Avio Spa enters the US defence market, will supply missile engines
Avio Spa signs contracts to produce missile engines in the US, entering the world's largest defence market
3' min read
Key points
3' min read
Avio Spa has signed two contracts in the USA to produce missile engines. The Colleferro-based company that manufactures the Vega space launcher thus enters the world's largest defence market. CEO Giulio Ranzo expects significant growth in Avio's production volumes and revenues within a few years.
Consequence of the Russia-Ukraine War
.With these contracts, the US boosts its munitions production capacities due to the depletion of stocks resulting from the massive supplies to Ukraine in the war with Russia. Domestic industries are unable to increase production sufficiently for the enormous demand created by the new arms race.
The agreement with Raytheon
.The first contract signed is with Raytheon, a division of Rtx, 'to initiate and advance the development of solid-propellant defence engines. The contract lays the foundation for the engineering work required to begin production of these engines,' says a company statement. Raytheon is the world's leading missile manufacturer. The Italian company will supply missile engines to increase the US group's production capacity.
How the collaboration will be
."This partnership with Avio marks the commitment between our companies to work together to develop resilient and responsive solid propellant engine manufacturing," said Bob Butz, Raytheon's director of operations and supply chain. "We will continue to develop and mature potential solid propellant engine solutions with Avio to ensure we can meet the growing long-term demand of our domestic and international customers."
A company in the USA
.Avio will be able to rely on the existing capabilities of its Italian production and engineering teams to support Avio USA's growth and facilitate its solid-propellant engine production strategy. Avio USA is a subsidiary of Avio in the United States with headquarters in Arlington, Virginia. "We are leveraging our past experience and track record in solid-propellant engines to help expand production capacity and develop new product lines to meet growing demand," said Giulio Ranzo, Avio's CEO. "Avio and Avio USA are ready to work with Raytheon to build a more resilient US industrial base for solid-propellant defence engines."
