RTX’s Raytheon business and Italian aerospace firm Avio announced a Memorandum of Understanding to build a new solid‑rocket‑motor plant in the United States. The facility will produce the Mk 104 motor and other advanced solid‑rocket motors for Raytheon and a broader customer base, with Raytheon receiving preferred access to a share of the plant’s production capacity.
While the exact U.S. site has not yet been disclosed, Avio plans to have the plant operational by early 2028. The project will be financed through an 80 % allocation of a €400 million capital increase that Avio is pursuing, underscoring the significant investment required to establish domestic production.
The partnership addresses a critical gap in the U.S. defense supply chain. By bringing solid‑rocket‑motor manufacturing to the United States, Raytheon can reduce dependence on foreign suppliers, shorten lead times, and secure a reliable source of propulsion components for its missile and space‑launch programs, including the Mk 104 motor that is already in the preliminary engineering phase.
RTX reported $80.74 billion in revenue for 2024, and Avio employs roughly 1,300 people. Avio’s expertise in European launch vehicles such as Vega and Ariane, as well as tactical missile propulsion, positions it to deliver high‑quality motors that meet U.S. defense specifications.
The deal comes amid a broader industry trend toward domestic solid‑rocket‑motor production. Growing demand from U.S. defense programs, heightened geopolitical tensions, and consolidation in the SRM market have prompted other players—such as Lockheed Martin and emerging entrants like Anduril—to seek new suppliers. The Raytheon‑Avio MoU therefore strengthens the U.S. industrial base and supports national security objectives.
With the plant slated to begin operations in early 2028, the MoU is expected to enhance Raytheon’s competitive position in missile and space launch markets while reinforcing U.S. strategic autonomy in propulsion technology.
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