Lockheed Martin, Avio Partner on Virginia Rocket Motor Plant

Lockheed Martin (NYSE: LMT) and Avio have entered a cooperation agreement to produce solid rocket motors for missile programs at a new facility in Hurt, Virginia, with the goal of bolstering defense supply chain resilience.

The collaboration addresses capacity constraints within the domestic defense industrial base by establishing an alternative manufacturing source for propulsion systems.

"A reliable and diverse supply chain for solid rocket motors is fundamental to our strategy for a stronger defense industrial base. This strategic cooperation agreement with Avio enables us to speed up production of essential capabilities, ensuring our customers maintain their competitive edge against emerging threats," said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.

Production Programs and Virginia Facility

Following qualification, initial manufacturing work at the new facility will focus on solid rocket motors for the Extended Range Gmlrs (ER GMLRS) and the Precision Strike Missile (PrSM). These tactical missile systems represent high-demand munitions for U.S. and allied armed forces.

Production will take place at Avio USA's newly constructed facility in Hurt, Virginia. The operation leverages the solid propulsion expertise of Avio S.p.A. (EXM: AVIO), the Italian aerospace company.

"This agreement is a major milestone for Avio USA and for the facility and team we are building in Virginia," said James Syring, CEO of Avio USA. "The Lockheed Martin programs contribute to a strong foundation for the factory operations. It gives us tremendous momentum as we continue construction, grow our U.S. workforce and prepare to begin manufacturing."

Investment and Merchant Supplier Strategy

To support the expansion, Avio has launched an investment exceeding $500 million in new solid rocket motor production capacity within the United States. The investment is designed to position the company as an independent merchant supplier across various defense customers.

"Avio has launched an investment of over $500M in new production capacity for SRMs in the United States with a view to become a merchant supplier to the various defense customers. In this context, Avio is excited to be able to support Lockheed Martin in their effort to increase production volumes and resiliency and will put all its expertise at work to accelerate towards this goal," said Giulio Ranzo, Chief Executive Officer of Avio.

What the Partnership Means for Defense Manufacturing

Solid rocket motors are a bottleneck in munitions production, with a limited number of domestic suppliers historically serving major prime contractors. By introducing a new merchant supplier backed by capital expenditure, the agreement seeks to diversify manufacturing capacity and mitigate supply chain vulnerabilities for high-volume artillery and missile systems.