Raytheon strengthens supplier network with deal to help Avio build US manufacturing facility
Story Highlights
- Raytheon inks deal with Avio establishing U.S. solid rocket motor facility
- Raytheon receives preferred access to share of new plant’s production capacity
- Partnership follows September deal for $26M Standard Missile engineering work
The Raytheon missile-making division of RTX Corp. (NYSE: RTX) has taken another step to bolster its supplier network by agreeing to help a key partner boost manufacturing in the United States.
Raytheon signed a memorandum of understanding with Italian company Avio to establish a U.S.-based solid rocket motor (SRM) facility. It will serve customers besides Raytheon, but Raytheon will have preferred access to a share of the plant’s production capacity to meet future demand, according to Raytheon, which has its missile operations based in Tucson.
A U.S. location for the new facility has not been announced, but Avio USA is based in Arlington, Virginia, which is where RTX is headquartered. The companies said it will be instrumental in meeting the growing demand for advanced SRMs.
“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, in a statement. “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 latest move follows a deal the two announced in September to collaborate on the Standard Missile, one of Raytheon’s stalwart products. Under that agreement, Avio USA will do up to $26 million in engineering work on the Mk 104 dual-thrust rocket motor.
The two companies had signed a deal late last year for preliminary work on that project, which Raytheon said resulted in successful system requirements and preliminary design reviews.