Avio and Lockheed Martin have signed a non-binding term sheet to support the establishment of Avio USA's state-of-the-art solid rocket motor (SRM) facility in the United States, which expects to serve Lockheed Martin and other customers as a vertically integrated merchant supplier.
Lockheed Martin will have preferred access to a portion of the Avio USA plant production capacity to meet future demand for its products while enhancing supply chain resilience to the US industrial base for both tactical and strategic size SRMs. The parties intend to negotiate a Strategic Cooperation Agreement in the near future to further align with the common goal of increasing the surety of supply for cost effective propulsion systems.
"Collaboration with Avio strengthens Lockheed Martin's commitment to a diverse, resilient supply chain for solid rocket motors-key to our 21st Century Security® vision. This term sheet positions us to increase production of essential capabilities and deliver them to our customers faster as global demand grows," said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.
"This term sheet marks a significant milestone in Avio's long-term growth strategy and our commitment to strengthening international relationships in the aerospace and defense sector. The establishment of Avio USA's SRM facility will allow us to bring our proven solid propulsion expertise to the United States, contributing to the innovation and development of a critical industrial supply chain. We are very pleased to contribute to Lockheed Martin's ongoing success and look forward to supporting their future initiatives," said Giulio Ranzo, CEO of Avio.
VADM (Ret) James Syring, CEO of Avio USA, stated: "The commercial relationship with Lockheed Martin, set forth in this term sheet, marks a pivotal step for the future of Avio USA, solidifying our status as a trusted partner and merchant supplier for both tactical and strategic size solid rocket motors in the U.S. Through this collaboration, we expect to deliver cutting-edge solid propulsion systems, enhancing the security and resilience of the American defense supply chain and strengthening the strategic bond between Avio and Lockheed Martin for years to come."
Avio's planned investments in fully integrated capabilities and specialized know-how are designed to promptly address customer needs, building on the company's extensive heritage in solid rocket motor technology. This initiative will strengthen the U.S. solid propulsion industrial base, positioning Avio USA as a key contributor to the defense supply chain.
Avio is a leading international group engaged in the manufacturing and development of space launchers and solid, liquid and cryogenic propulsion systems. The experience and know-how built up over more than 50 years puts Avio at the cutting-edge of the space launcher sector and defense program. Avio is present in Italy, France, United States and French Guyana, employing more than 1500 highly qualified personnel. Avio is the prime contractor for the Vega program and a sub-contractor for the Ariane program, as well as a leading solid rocket motor subcontractor for the design and manufacturing of major European tactical missile programs.
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.
Avio USA Inc. is a subsidiary of Avio S.p.A. with its headquarters in Arlington, Virginia. Avio USA is structured to operate in compliance with US security and export-control regulations and is governed by a US-led board of directors. The CEO of Avio USA is retired US Navy Vice Admiral James Syring, former Director of the US Missile Defense Agency.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251110123834/en/
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