Avio Partners With Raytheon (RTX) to Build a More Resilient U.S. Defense Industrial Base for Solid Rocket Motor Production

Rhea-AI Summary

Avio has signed a contract with Raytheon, an RTX (NYSE:RTX) business, to develop critical solid rocket motors for defense applications. This partnership aims to enhance the resilience and responsiveness of solid rocket motor production. The contract focuses on advancing systems engineering work to bring these motors to a production-ready state.

Avio plans to leverage its Italian manufacturing and engineering capabilities to support the growth of Avio USA, its wholly owned subsidiary based in Arlington, Virginia. This collaboration is expected to help meet the increasing long-term demand from both domestic and international customers in the defense sector.

Positive

• Partnership with Raytheon, a major defense contractor, potentially expanding market reach
• Development of critical solid rocket motors for defense applications, indicating potential revenue growth
• Planned investments in capability and capacity to support immediate customer demand
• Leveraging existing Italian manufacturing and engineering capabilities to support U.S. operations

Negative

• None.

COLLEFERRO, ITALY / ACCESSWIRE / July 25, 2024 / Avio signed a contract with Raytheon, an RTX (NYSE:RTX) business, leaders in defense solutions for the U.S. Government and Allied Demand, to initiate and progress the development of critical solid rocket motors for defense applications. The contract furthers the systems engineering work required to mature these solid rocket motors into a production-ready state.

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"This partnership with Avio marks a commitment between our companies to work together to develop resilient and responsive production of solid rocket motors," said Bob Butz, vice president, operations and supply chain, Raytheon. "We will continue to develop and mature potential rocket motor solutions with Avio to ensure we can meet the increased long-term demand of our domestic and international customers."

Avio's planned investments in capability and capacity enable them to help support immediate customer demand. Avio is leveraging its Italian manufacturing and engineering teams' existing capabilities to support the maturation of Avio USA and to facilitate their domestic solid rocket motor manufacturing strategy. Avio USA is a wholly owned subsidiary of Avio headquartered in Arlington, Virginia.

"We are leveraging our past experience and track record in solid rocket motors to help expand production capacity and develop new product lines to meet the growing demand," said Giulio Ranzo, CEO of Avio. "Avio and Avio USA are eager to partner with Raytheon to build a more resilient U.S. industrial base for rocket motors."

Contact Information

Alessandro Agosti
Investor Relations
alessandro.agosti@avio.com

Nevio Quattrin
Investor Relations
nevio.quattrin@avio.com

Francesco De Lorenzo
Media Relations
francesco.delorenzo@avio.com

SOURCE: Avio

View the original press release on newswire.com.

FAQ

What is the purpose of Avio's contract with Raytheon (RTX)?

The contract aims to develop critical solid rocket motors for defense applications and advance systems engineering work to bring these motors to a production-ready state.

How will this partnership affect Avio's U.S. operations?

Avio plans to leverage its Italian capabilities to support the growth of Avio USA, its subsidiary in Arlington, Virginia, and facilitate domestic solid rocket motor manufacturing.

What is the expected impact of this partnership on Raytheon's (RTX) customer demand?

The partnership is expected to help meet the increasing long-term demand from both domestic and international customers in the defense sector.

How does this contract contribute to the U.S. defense industrial base?

The partnership aims to build a more resilient U.S. industrial base for rocket motors by expanding production capacity and developing new product lines.