Avio USA picks Virginia for $500M solid rocket motor factory

Avio USA, the Arlington County-based U.S. subsidiary of Italian rocket company Avio SpA, has chosen Virginia as the location for a $500 million advanced manufacturing facility where it will produce solid rocket motors, Gov. Glenn Youngkin announced late Wednesday.

The planned 860,000-square-foot facility will make motors for defense tactical and strategic propulsion as well as commercial space propulsion sectors. The site’s location is expected to be announced early next year.

Defense News previously reported on Nov. 14 that Avio had plans to build a solid rocket motor facility in the United States that would employ up to 1,500 workers and would be expected to open in 2028.

“Today’s announcement marks another exciting milestone for our aerospace and defense industry,” Youngkin said in a news release. “Avio USA‘s decision to build a new rocket motor manufacturing facility here is both an important investment in America’s national security infrastructure and underscores Avio USA’s confidence in Virginia.”

The plant is supported by a recent capital raise of about 400 million euros by Avio SpA. Avio did not immediately respond to a request for comment.

“As we enter a new chapter for the commonwealth, Avio’s commitment to Virginia demonstrates the future we’re building — innovative, competitive, and rooted in strong partnerships,” Gov.-elect Abigail Spanberger stated in the release. “This kind of investment leverages Virginia’s strengths, and I’m committed to continuing the momentum of creating good jobs and fostering sustainable growth for the commonwealth.”

In November, Avio announced that it had signed a nonbinding term sheet with Maryland-based defense contractor Lockheed Martin to support the establishment of Avio USA’s solid rocket motor facility. The same month, Avio and Arlington County-based Raytheon announced the companies had signed a memorandum of understanding to establish a solid rocket motor facility in the United States.

Founded in 1912, Avio SpA specializes in the design, development and production of space launch systems and propulsion components.

In 2022, the company launched Avio USA in Arlington. Since 2024, the company has operated under a special security agreement with the U.S. Department of Defense, branded by the Trump administration as the Department of War.

The Avio group also has facilities in Italy, France and at the European Spaceport in French Guiana.