ROME — Italian propulsion firm Avio is a few weeks away from naming the U.S. state where it plans to build a factory employing up to 1,500 to satisfy growing demand for a solid rocket motors.
“There are several states under active consideration, we are in the final stages of due diligence,” said retired U.S. Navy Vice Adm. James Syring, CEO of Avio’s American unit Avio USA.
Syring served as director of the U.S. Missile Defense Agency from 2012 to 2017.
“We are weighing the incentive packages offered by the individual states,” Syring told Defense News, adding the firm had a shortlist of three states and planned to make a decision in “the next few weeks.”
Last year Avio signed with Raytheon to become a second source supplier of the Mk 104 dual-thrust rocket motor which is used in the Standard Missile.
Work on the motors is expected to start at Avio’s Italian facility ahead of the opening of its U.S. site in 2028.
This week it also announced a deal with Lockheed Martin on second source work, which will likely focus on army systems.
Avio has said that both Raytheon and Lockheed Martin “will have preferred access to a share of the Avio plant production capacity to meet future demand.”
Syring said, “We are not aligned to either of the prime contractors exclusively,” adding he hoped for “long-term strategic relationship with both.”
Syring said he expects ground breaking on the U.S. facility in the first quarter of 2026 with ambitions to build a 1,200 acre site which would employ 1,500 at full strength, and produce up to 2,000 tons of propellant a year.
“The initial capacity will around 700 tons,” he said.
Demand for missiles in the U.S. and globally, coupled with the consolidation of suppliers in the United States, has prompted Avio to move into the U.S. market.
“There are two incumbents for solid rocket motors for tactical defense motors – Aerojet under L3, and Northrop Grumman which bought ATK. They supply all defense motors in the United States. The demand has increased so much for missiles there is a lack of capacity in the U.S. supply base,” said Syring.
Last month Avio announced a €400 million ($466 million) capital increase and stated that 80% of the sum – €320 million – would be used to build the U.S. facility.
Avio’s current defense work makes up 20% of its revenues, with the remainder deriving from civil work including satellites. The firm has said that by 2035 it expects defense work to rise to 60% of revenues.
Tom Kington is the Italy correspondent for Defense News.
