Lockheed Martin and Avio Announce Strategic Cooperation Agreement for Solid Rocket Motor Production

WASHINGTON--(BUSINESS WIRE)--#Avio--Lockheed Martin (NYSE: LMT) and Avio announced a strategic cooperation agreement for the production of solid rocket motors (SRMs). This collaboration will accelerate and expand the SRM industrial base with key manufacturing capabilities, bringing resiliency to a vital U.S. supply chain.

THE BIG PICTURE

After qualification, initial work will focus on the production of solid rocket motors for the Extended Range GMLRS^® (ER GMLRS) and the Precision Strike Missile (PrSM). SRM production for these essential programs will be performed at Avio USA’s new state-of-the-art facility in Hurt, Virgina, drawing on the longstanding solid propulsion expertise of its parent company, Avio S.p.A. (EXM: AVIO).

WHY IT MATTERS

• SRM supply chain resiliency: This agreement provides Lockheed Martin access to a share of Avio’s merchant supply capacity for ER GMLRS and PrSM production, ensuring flexibility and creating surety of supply in the crucial SRM supply chain to meet accelerating customer demand and guarantee uninterrupted mission readiness across global operations.
• Increased production capacity: By augmenting the defense industrial base, this effort demonstrates Lockheed Martin’s agile response to heightened production requirements, supporting the expansion of dedicated lines and resources to fulfill emerging operational needs for SRM production.
• Accelerated ER GMLRS and PrSM manufacturing capabilities: By leveraging expanded SRM production capacity, Lockheed Martin is creating the opportunity to accelerate ER GMLRS and PrSM output to deliver increased munition volumes faster to support warfighters and combatant commands.

EXPERT PERSPECTIVE

• “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.
• “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.”
• “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.

ADDITIONAL DETAILS

This strategic cooperation agreement between Lockheed Martin and Avio USA will strengthen the U.S. SRM industrial base, bolstering the defense supply chain and enabling our troops to have access to reliable, high-performance munitions to defend our nation and its allies.

About Lockheed Martin

Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security^® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.

About Avio USA

Avio USA Inc., headquartered in Arlington, Virginia, is a subsidiary of Avio S.p.A. structured to operate in compliance with U.S. security and export-control regulations. The company is governed by a U.S.-based board of directors and led by CEO James Syring, a retired U.S. Navy Vice Admiral and former Director of the U.S. Missile Defense Agency. Avio USA is building a growing U.S. engineering, manufacturing and operations presence, leveraging Avio’s global propulsion expertise to expand domestic production and serve as an independent supplier to U.S. defense customers and industry partners. Learn more at AvioUSA.com.

About Avio

Avio S.p.A. (EXM: 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 programs. Avio is present in Italy, France, the United States and French Guiana, employing more than 1,500 highly qualified personnel. Avio is the prime contractor for the Vega program and a subcontractor for the Ariane program, as well as a leading solid rocket motor subcontractor for the design and manufacturing of major European tactical missile programs. Learn more at Avio.com.

Media Contacts:

Lockheed Martin Media Relations:
+1 972-310-1979; mfc.media@lmco.com

Avio USA - Media Relations:
Kristina Messner, kristina@messnermediagroup.com, +1 703-716-3181

Avio - Media Relations:
francesco.delorenzo@avio.com