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RTX's Raytheon, Avio sign MoU to establish new solid rocket motor facility in the U.S.

1. Raytheon partners with Avio for a new rocket motor facility in the U.S. 2. Agreement enhances supply of solid rocket motors, meeting growing defense demands. 3. Raytheon gains preferred access to Avio's production capacity. 4. Facility supports critical weapon system needs for the U.S. and allies. 5. Partnership builds on earlier contracts for advanced rocket motor developments.

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Why Bullish?

This partnership strengthens Raytheon's supply chain and production capacity, potentially boosting RTX's market position. Historical collaborations have often led to increased stock prices for defense contractors.

How important is it?

The agreement indicates a solid strategic move to enhance production capabilities, likely spurring investor confidence in RTX's future performance.

Why Long Term?

The establishment of the facility will take time, impacting RTX positively over several quarters. Similar past initiatives have shown gradual benefits as operational capacities grow.

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Facility will be instrumental in meeting growing demand , /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has signed a Memorandum of Understanding to help Avio establish a state-of-the-art solid rocket motor (SRM) facility in the United States, serving Raytheon and other customers as a vertically integrated merchant supplier. Raytheon will have preferred access to a share of the Avio plant production capacity to meet future demand. This strategic partnership marks another significant milestone in the collaboration between the two companies, building on a contract signed in July 2024 for preliminary engineering work on the Mk 104 rocket motor and a recent purchase order to fund through Critical Design Review and procurement of long lead material for qualification. "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. "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 new Avio facility will be instrumental in meeting the growing demand for advanced SRMs and will contribute to the continued success of both companies in delivering high-quality defense products. Avio and Raytheon are committed to working together to ensure the successful implementation of this initiative and to support the defense needs of the United States and its allies. "We are proud to be partnered with Raytheon for their future production capacity needs at our new factory facility. We look forward to leveraging the incredible pedigree and experience of our parent company Avio S.p.A. as we build our factory and establish in the U.S. as a true vertically integrated merchant supplier," said VADM Ret. Jim Syring, CEO of Avio USA. About Raytheon Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space. About RTX RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia. 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 program. Avio is present in Italy, France, United States and French Guyana, employing more than 1500 highly qualified personnel. Avio is the prime contractor for the Vega program and a sub-contractor for the Ariane program, as well as a leading solid rocket motor subcontractor for the design and manufacturing of major European tactical missile programs. Avio USA Inc. is a subsidiary of Avio S.p.A. with its headquarters in Arlington, Virginia. Avio USA is structured to operate in compliance with US security and export-control regulations and is governed by a US-led board of directors. The CEO of Avio USA is retired US Navy Vice Admiral James Syring, former Director of the US Missile Defense Agency. For questions or to schedule an interview, please contact [email protected]. SOURCE RTX

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