Avio Partners With Raytheon (RTX) to Build a More Resilient U.S. Defense Industrial Base for Solid Rocket Motor Production
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.
Avio ha firmato un contratto con Raytheon, un'azienda di RTX (NYSE:RTX), per sviluppare motori a razzo solidi critici per applicazioni di difesa. Questa collaborazione mira a migliorare la resilienza e la reattività della produzione di motori a razzo solidi. Il contratto si concentra sul avanzamento del lavoro di ingegneria di sistema per portare questi motori a uno stato di produzione pronto.
Avio prevede di sfruttare le proprie capacità produttive e ingegneristiche italiane per supportare la crescita di Avio USA, la sua controllata interamente posseduta con sede ad Arlington, Virginia. Si prevede che questa collaborazione contribuirà a soddisfare la crescentes richiesta a lungo termine da parte dei clienti sia nazionali che internazionali nel settore della difesa.
Avio ha firmado un contrato con Raytheon, una empresa de RTX (NYSE:RTX), para desarrollar motores de cohete sólido críticos para aplicaciones de defensa. Esta asociación tiene como objetivo mejorar la resiliencia y la capacidad de respuesta de la producción de motores de cohete sólido. El contrato se centra en avanzar en el trabajo de ingeniería de sistemas para llevar estos motores a un estado listo para la producción.
Avio planea aprovechar sus capacidades de fabricación e ingeniería italianas para apoyar el crecimiento de Avio USA, su filial de propiedad total ubicada en Arlington, Virginia. Se espera que esta colaboración ayude a satisfacer la creciente demanda a largo plazo de clientes tanto nacionales como internacionales en el sector de la defensa.
Avio는 방어 응용 프로그램을 위한 중요한 고체 로켓 모터를 개발하기 위해 RTX(NYSE:RTX) 기업인 Raytheon과 계약을 체결했습니다. 이번 파트너십은 고체 로켓 모터 생산의 회복력과 반응성을 향상시키는 것을 목표로 합니다. 이 계약은 이러한 모터를 생산 준비 상태로 가져오기 위한 시스템 엔지니어링 작업을 발전시키는 데 중점을 두고 있습니다.
Avio는 미국 버지니아 주 알링턴에 본사를 둔 완전 자회사인 Avio USA의 성장을 지원하기 위해 이탈리아의 제조 및 엔지니어링 능력을 활용할 계획입니다. 이 협력은 방어 부문에서 국내 및 국제 고객의 증가하는 장기 수요를 충족하는 데 도움이 될 것으로 기대됩니다.
Avio a signé un contrat avec Raytheon, une entreprise de RTX (NYSE:RTX), pour développer des moteurs-fusées solides critiques pour des applications de défense. Ce partenariat vise à améliorer la résilience et la réactivité de la production de moteurs-fusées solides. Le contrat se concentre sur l'avancement du travail d'ingénierie système afin de préparer ces moteurs pour la production.
Avio prévoit d'exploiter ses capacités de fabrication et d'ingénierie italiennes pour soutenir la croissance d'Avio USA, sa filiale entièrement détenue basée à Arlington, en Virginie. Cette collaboration devrait aider à répondre à la demande croissante à long terme de la part de clients nationaux et internationaux dans le secteur de la défense.
Avio hat einen Vertrag mit Raytheon, einem Unternehmen von RTX (NYSE:RTX), unterzeichnet, um kritische Feststoffraketentriebwerke für Verteidigungslösungen zu entwickeln. Diese Partnerschaft zielt darauf ab, die Resilienz und Reaktionsfähigkeit der Produktion von Feststoffraketentriebwerken zu verbessern. Der Vertrag konzentriert sich darauf, die Systemingenieurarbeit voranzutreiben, um diese Triebwerke in einen produktionsbereiten Zustand zu bringen.
Avio plant, seine italienischen Fertigungs- und Ingenieursfähigkeiten zu nutzen, um das Wachstum von Avio USA, seiner hundertprozentigen Tochtergesellschaft mit Sitz in Arlington, Virginia, zu unterstützen. Diese Zusammenarbeit wird voraussichtlich dazu beitragen, die steigende langfristige Nachfrage sowohl von nationalen als auch internationalen Kunden im Verteidigungssektor zu befriedigen.
- 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
- None.
This partnership between Avio and Raytheon, an RTX business, represents a strategic move in the defense sector with potential long-term implications for both companies. While the financial terms of the contract are not disclosed, the collaboration aims to address the growing demand for solid rocket motors in defense applications.
From an investor's perspective, this development could positively impact Avio's future revenue streams and market position. The company's planned investments in capability and capacity, coupled with the leverage of its Italian manufacturing and engineering expertise, suggest a potential for growth in the U.S. market through its subsidiary, Avio USA.
For RTX (NYSE:RTX), this partnership aligns with its strategy to strengthen its supply chain and production capabilities in critical defense technologies. The move could enhance RTX's competitive position in fulfilling domestic and international defense contracts.
However, investors should note that the defense sector is subject to geopolitical factors and government spending priorities, which can influence the long-term success of such partnerships. The lack of specific financial details or timelines in the announcement makes it challenging to quantify the immediate impact on either company's financials.
This collaboration between Avio and Raytheon signifies a notable shift in the U.S. defense industrial base strategy. By partnering with an Italian firm, Raytheon is diversifying its supply chain for critical components, potentially mitigating risks associated with domestic production constraints.
The emphasis on developing 'resilient and responsive production' of solid rocket motors suggests an anticipation of increased demand and potential supply chain challenges in the future. This proactive approach could position both companies favorably in a competitive defense market.
Avio's involvement, particularly through Avio USA, indicates a push for technology transfer and localization of production in the United States. This strategy aligns with broader trends in defense procurement, where domestic production is often preferred for security and economic reasons.
For the defense sector as a whole, this partnership could signal a trend towards more international collaborations in critical technology areas. Such moves might lead to increased competition and innovation in the solid rocket motor market, potentially benefiting end-users like the U.S. military and allied forces.
Investors should monitor how this partnership evolves and whether it leads to significant contract awards in the future, as these would be key indicators of the collaboration's success and financial impact.
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.
"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)?
How will this partnership affect Avio's U.S. operations?
What is the expected impact of this partnership on Raytheon's (RTX) customer demand?
How does this contract contribute to the U.S. defense industrial base?
