Avio SpA announced that it has been awarded a $65 million contract by Defense Systems and Solutions to carry out development work and initial production of solid propellant engines in the United States. The agreement, which runs for three years, assigns the Italian aerospace company responsibility for both the engineering phase and the first production runs of the propulsion units.
Under the contract terms, serial production of the engines could begin in 2029 at Avio’s U.S. facility, pending the conditions outlined in the agreement. The engines produced under this program are intended for integration into defense systems supplied to U.S. forces and NATO partner militaries.
Defense Systems and Solutions selected Avio to execute the program in the U.S. market. The arrangement covers the design and manufacturing tasks specified in the contract and positions Avio to deliver propulsion systems to American and allied defense customers.
The contract represents a formal extension of Avio’s footprint into the U.S. defense sector through its American operations. Over the three-year period specified, Avio will manage the development process and the initial production runs that the contract requires, maintaining responsibility for the technical and manufacturing elements agreed with Defense Systems and Solutions.
Company representatives have described the deal as covering both development and initial production phases; the execution schedule includes a potential transition to serial manufacturing that may begin in 2029 at Avio’s U.S. facility. The engines produced under the contract are explicitly intended for defense systems destined for the United States and NATO allies.
The agreement is limited in duration to three years and focuses on the early-stage production activities needed to launch the propulsion hardware in the U.S. market. It also serves as the vehicle through which Avio is expanding its American operations into defense-related manufacturing and supply for allied forces.
Summary
Avio has won a $65 million, three-year contract from Defense Systems and Solutions to develop and carry out initial production of solid propellant engines in the United States. Serial production may start in 2029 at Avio’s U.S. facility, and the engines will be used in systems supplied to U.S. and NATO forces. The agreement marks Avio’s expansion into the U.S. defense market through its American operations.