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.

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