Agreement between U.S ,,RTX’' and Italian,, AVIO’’

Italian rocket and defense engine manufacturer Avio, known for producing the Vega rocket family, has signed a Memorandum of Understanding (MoU) with U.S. defense group RTX to build a solid-propulsion engine production plant in the United States. This move aligns with the U.S.’s protectionist policies—as tariffs and trade tensions rise, more European aerospace and defense companies (like Anywaves and Exotrail) are setting up operations in the U.S. to integrate directly into American supply chains and gain access to U.S. government contracts. Under the deal, RTX will receive privileged access to the new facility’s production capacity. The partnership builds on their previous collaboration on the Mk104 engine, which recently completed its critical design review. Avio recently reported a 26% revenue increase, driven by strong defense demand. The company also secured a contract with the European Space Agency (ESA) for a reusable upper stage design and completed a €400 million capital increase in September.