Raytheon and Avio Partner to Boost US Solid Rocket Motor Production

A Strategic Alliance: Raytheon and Avio to Bolster US Rocket Motor Production

In a significant move to strengthen the U.S. defense industrial base, RTX’s Raytheon business has signed a Memorandum of Understanding (MOU) with Italian aerospace leader Avio. This agreement paves the way for the establishment of a new, state-of-the-art solid rocket motor (SRM) production facility in the United States. The initiative directly addresses the escalating demand for these critical components, which are fundamental to a wide array of missile systems and space launch vehicles. As global defense needs evolve and supply chains face increasing pressure, this transatlantic Partnerships marks a proactive step toward ensuring production capacity and resilience for crucial national security assets.

The collaboration is not just about building a new factory; it represents a strategic deepening of the relationship between two aerospace titans. Avio, with its extensive history in space propulsion, will establish and operate the U.S. facility, bringing a wealth of European expertise to American soil. The plant is set to function as a vertically integrated “merchant supplier,” meaning it will serve not only Raytheon but other customers as well. This model fosters a more competitive and robust market, preventing bottlenecks and enhancing the overall health of the defense supply chain. For Raytheon, the agreement secures preferred access to a portion of the facility’s output, guaranteeing a stable supply for its key programs, including the vital Standard Missile franchise.

Forging a Resilient Supply Chain

The decision to establish a new SRM facility is a direct response to clear market signals and strategic necessity. The global demand for solid rocket motors is on a steep upward trajectory, driven by increased defense spending worldwide and a burgeoning commercial space launch sector. Projections from industry analysts underscore this trend, with the market expected to grow substantially in the coming decade. This surge has placed significant strain on existing production capabilities, making the expansion of the industrial base a critical priority for both industry and government.

This MOU is the logical next step in a partnership that has already proven fruitful. The collaboration formally began in July 2024, when Raytheon and Avio inked a contract for preliminary engineering work on the Mk 104 dual-thrust rocket motor. This was followed by a purchase order to advance the project through its Critical Design Review and procure long-lead materials, demonstrating a clear commitment to establishing Avio as a second-source supplier for this essential component. By diversifying the supply chain for the Mk 104, which is currently produced by a single supplier, Raytheon is actively mitigating risk and enhancing its ability to meet soaring demand from its customers.

The strategic implications of this partnership extend far beyond a single component or company. By bringing a new, highly capable SRM manufacturer into the U.S., the initiative strengthens the nation’s sovereign defense capabilities. It reduces reliance on a limited pool of suppliers and introduces new technologies and processes from a proven international partner. This move is a testament to the importance of collaboration among allied nations in the defense sector, creating a more integrated and resilient transatlantic industrial base prepared to meet future challenges.

“This agreement will help establish an additional supplier of solid rocket motors within the U.S. and demonstrates our commitment to meeting the increasing demands of our customers,” stated Bob Butz, Vice President of Operations, Supply Chain and Quality at Raytheon. “By leveraging Avio’s experience and unique capabilities in solid rocket motor propulsion development and manufacturing, we’re strengthening our capacity for critical weapon systems.”

Expertise Meets Opportunity

The Power Players: Raytheon and Avio

Understanding the entities involved sheds light on the significance of this collaboration. Raytheon, a business unit of the aerospace and defense conglomerate RTX, is the world’s largest producer of guided missiles. With a history stretching back to 1922, its expertise in missile systems, radars, and mission integration is unparalleled. Raytheon’s deep involvement in programs like the Standard Missile makes a reliable supply of high-performance solid rocket motors an absolute necessity for its operations and for U.S. naval defense.

On the other side of the partnership is Avio S.p.A., an Italian aerospace company with a legacy in propulsion dating back to 1908. As a leader in solid and liquid propellant systems, Avio is the prime contractor for Europe’s Vega space launcher and a key partner in the Ariane program. This extensive experience in developing and manufacturing propulsion systems for both space and tactical applications makes Avio an ideal partner. Its U.S. subsidiary, Avio USA Inc., is structured to comply with all U.S. security and export-control regulations, ensuring a seamless integration into the American defense landscape.

The synergy is clear: Raytheon brings the demand and systems integration expertise, while Avio provides proven, high-volume manufacturing capability and decades of specialized propulsion knowledge. As Jim Syring, CEO of Avio USA, noted, the company looks forward to “leveraging the incredible pedigree and experience of our parent company Avio S.p.A. as we build our factory and establish in the U.S. as a true vertically integrated merchant supplier.” This combination is poised to create a formidable new force in the U.S. solid rocket motor market.

Conclusion: A Future-Proof Propulsion Strategy

The Memorandum of Understanding between Raytheon and Avio is a forward-looking solution to a present-day challenge. It is a strategic Investments in the resilience, capacity, and technological advancement of the U.S. defense industrial base. By creating a new, independent source for solid rocket motors, the partnership directly addresses supply chain vulnerabilities and prepares for sustained growth in demand from both defense and commercial sectors. This collaboration is more than just a business agreement; it is a crucial piece of industrial strategy that will enhance national security and foster transatlantic cooperation.

Looking ahead, the establishment of this new facility will have a lasting impact. It will create high-skilled Manufacturing jobs, inject new competition and innovation into the market, and ensure that the U.S. and its allies have access to the critical propulsion technologies needed to maintain a strategic edge. As the geopolitical and space landscapes continue to evolve, the foresight demonstrated by this partnership will undoubtedly prove invaluable, ensuring a steady and reliable supply of the power that propels modern defense systems.

FAQ

Question: What is the main goal of the new facility being established by Raytheon and Avio?
Answer: The primary goal is to establish a new, U.S.-based production facility for solid rocket motors (SRMs) to address growing demand, increase supply chain resilience, and bolster the U.S. defense industrial base.

Question: Who are the main companies involved in this agreement?
Answer: The agreement is a Memorandum of Understanding (MOU) between RTX’s Raytheon business, a major U.S. defense contractor, and Avio, a leading Italian aerospace company specializing in space propulsion.

Question: Will the new facility only produce rocket motors for Raytheon?
Answer: No, the facility will operate as a “merchant supplier,” meaning it will serve Raytheon as well as other customers in the defense and aerospace industry. Raytheon, however, will have preferred access to a portion of the production capacity.

Question: Is this the first time Raytheon and Avio have worked together?
Answer: No, this MOU is an expansion of an existing partnership. The two companies began collaborating in July 2024 on engineering work for the Mk 104 dual-thrust rocket motor, a key component in Raytheon’s Standard Missile program.

Sources: RTX News Center