RTX's Raytheon, Avio sign MoU to establish new solid rocket motor facility in the U.S.

Rhea-AI Summary

Raytheon (NYSE: RTX) signed a Memorandum of Understanding with Avio to support establishment of a solid rocket motor (SRM) facility in the U.S. Raytheon will have preferred access to a share of the plant's production capacity to meet future demand. This builds on a July 2024 contract for preliminary engineering on the Mk 104 motor and a recent purchase order funding work through Critical Design Review and long‑lead procurement.

The MoU positions Avio as a vertically integrated merchant supplier in the U.S. and aims to expand SRM supply for Raytheon and other customers to support U.S. and allied defense needs.

Insights

Defense industry supply-chain analyst

Memorandum creates U.S. SRM capacity with preferred access for Raytheon, strengthening supply options for critical weapons.

By signing a Memorandum of Understanding to help establish a U.S. solid rocket motor facility, Raytheon secures preferred access to a portion of production capacity from Avio. The arrangement builds on earlier work begun in July 2024, including preliminary engineering for the Mk 104 motor and a purchase order that funds work through Critical Design Review and long‑lead procurement.

Key dependencies include successful facility buildout, completion of the stated engineering and procurement milestones, and the firms’ ability to qualify production for defense use. The announcement highlights supply diversification but depends on execution of construction, certification, and production qualification steps that are not detailed here.

Watch for concrete milestones and timing: completion of Critical Design Review, procurement progress for long‑lead items, and any firm production schedules or capacity shares announced after Nov. 10, 2025. Those items will clarify how quickly preferred access translates into usable inventory for weapon programs.

Facility will be instrumental in meeting growing demand

ARLINGTON, Va., Nov. 10, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has signed a Memorandum of Understanding to help Avio establish a state-of-the-art solid rocket motor (SRM) facility in the United States, serving Raytheon and other customers as a vertically integrated merchant supplier. Raytheon will have preferred access to a share of the Avio plant production capacity to meet future demand.

This strategic partnership marks another significant milestone in the collaboration between the two companies, building on a contract signed in July 2024 for preliminary engineering work on the Mk 104 rocket motor and a recent purchase order to fund through Critical Design Review and procurement of long lead material for qualification.

"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," said 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."

The new Avio facility will be instrumental in meeting the growing demand for advanced SRMs and will contribute to the continued success of both companies in delivering high-quality defense products. Avio and Raytheon are committed to working together to ensure the successful implementation of this initiative and to support the defense needs of the United States and its allies.

"We are proud to be partnered with Raytheon for their future production capacity needs at our new factory facility. We look 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," said VADM Ret. Jim Syring, CEO of Avio USA.

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

RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push 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 for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.

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.

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.

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

 

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-avio-sign-mou-to-establish-new-solid-rocket-motor-facility-in-the-us-302609316.html

SOURCE RTX

FAQ

What did RTX announce on November 10, 2025 about an Avio SRM facility?

RTX announced a Memorandum of Understanding to help Avio establish a U.S. solid rocket motor facility with RTX having preferred access to a share of production capacity.

How does the Avio MoU relate to RTX's prior Mk 104 work?

The MoU builds on a July 2024 contract for preliminary engineering on the Mk 104 motor and a recent purchase order funding work through Critical Design Review and long‑lead procurement.

Will RTX get priority for motors from the new Avio plant and why does that matter for RTX (NYSE: RTX)?

Yes; RTX will have preferred access to a share of the plant's production capacity, which aims to help meet RTX's future SRM demand and strengthen supply resilience.

Where will the new Avio solid rocket motor facility be located and when will it begin production?

The announcement states the facility will be in the United States but does not specify a site or a production start date.

What role will the Avio facility play for U.S. defense customers and RTX shareholders?

The facility is intended to expand domestic SRM supply for RTX and other customers to support U.S. and allied defense needs; specific financial impacts were not disclosed.