RTX's Raytheon partners with AVIO to build a more resilient U.S. Defense Industrial Base for solid rocket motor production

Rhea-AI Summary

Raytheon, an RTX business, has signed a contract with Avio to develop solid rocket motors for defense applications. This partnership aims to enhance the resilience and responsiveness of solid rocket motor production for the U.S. Defense Industrial Base. Avio completed its preliminary design development in April 2024, addressing the need for additional sources of two critical solid rocket motor systems.

The collaboration leverages Avio's Italian manufacturing and engineering capabilities to support the maturation of Avio USA and facilitate domestic solid rocket motor manufacturing. This partnership is expected to meet the increasing long-term demand from both domestic and international customers, contributing to a more robust U.S. industrial base for rocket motors.

Positive

• Partnership with Avio to develop critical solid rocket motors
• Expansion of production capacity to meet increasing customer demand
• Leveraging Avio's existing capabilities to support U.S. domestic manufacturing

Negative

• None.

Insights

Defense Industry Analyst

The partnership between Raytheon and Avio signifies a strategic move to bolster the U.S. defense industrial base, particularly in the domain of solid rocket motor production. This collaboration is critical in ensuring that the U.S. can meet both domestic and international demand for defense technology, which is increasingly being viewed as a national security priority. By leveraging Avio's established expertise and existing capabilities, Raytheon can rapidly scale production and enhance the resilience of its supply chain. This development should be viewed positively by investors as it indicates a commitment to long-term growth and stability in a important area of defense technology.

Financial Analyst

From a financial perspective, the contract with Avio could lead to significant long-term benefits for Raytheon. The ability to meet increased demand for solid rocket motors translates to potential revenue growth and can position Raytheon as a key supplier in the defense sector. Additionally, investments in production capacity and new product lines by Avio may lead to cost efficiencies and higher profit margins over time. For investors, this partnership underscores Raytheon's strategic foresight and its alignment with government priorities, which can be expected to support stable or growing revenue streams in the coming years.

Supply Chain Expert

This collaboration addresses a critical bottleneck in the defense supply chain – the production of solid rocket motors. The partnership with Avio not only helps Raytheon to scale production but also to diversify its supply base. By leveraging Avio’s capabilities in Italy and their planned expansion in the U.S., Raytheon can mitigate risks associated with supply chain disruptions. This strategic move enhances the robustness and responsiveness of Raytheon's supply chain, ensuring that they can adapt to fluctuations in demand and geopolitical developments. From a supply chain perspective, this partnership strengthens Raytheon's operational resilience and positions them favorably in the defense market.

Raytheon signs contract with AVIO to continue the development of solid rocket motor solutions to meet USG and Allied Demand.

LONDON, July 23, 2024 /PRNewswire/ -- Farnborough Air Show -- Raytheon, an RTX (NYSE: RTX) business, signed a contract with Avio (AVIO.MI), leaders in propulsion technology, for the development of critical solid rocket motors for defense applications. The contract further progresses 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 potenial rocket motor solutions with Avio to ensure we can meet the increased long-term demand of our domestic and international customers."

In April 2024, Avio completed its preliminary design development to support the pressing need for additional sources for two critical solid rocket motor systems. 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.

"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."

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

About Avio is a leading international group operating in the development and production of space launchers and solid propulsion systems for defense applications. With over 1,300 employees, Avio runs its business in Italy and in French Guyana at the European spaceport, where its satellite launcher Vega is operated. The experience and know-how in defense and space solid propulsion dates back over 60 years during which the company has developed advanced technologies and manufacturing solutions. The company is headquartered in Rome, Italy and has its subsidiary Avio USA headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com 

 

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SOURCE RTX

FAQ

What is the purpose of RTX's Raytheon partnership with AVIO?

The partnership aims to build a more resilient U.S. Defense Industrial Base for solid rocket motor production, developing critical solid rocket motors for defense applications to meet increasing domestic and international demand.

When did Avio complete its preliminary design development for RTX's Raytheon project?

Avio completed its preliminary design development in April 2024 to support the need for additional sources of two critical solid rocket motor systems.

How will the Raytheon-AVIO partnership affect RTX's production capabilities?

The partnership is expected to enhance RTX's ability to meet increased long-term demand for solid rocket motors from both domestic and international customers, while also building a more resilient U.S. industrial base for rocket motors.

What role does Avio USA play in the RTX partnership?

Avio is leveraging its Italian manufacturing and engineering teams to support the maturation of Avio USA and facilitate their domestic solid rocket motor manufacturing strategy in the United States.