Italian rocket builder Avio announced on 6 March that it had secured a $65 million contract from US-based Defense Systems and Solutions for the development, qualification, and initial production of solid rocket motors. The announcement came just days after the company’s shareholders approved amendments to its bylaws aimed at streamlining its management structure, in part to address its growing exposure to the US market.
Avio created its US subsidiary in 2022 to address what it described as a gap in production capacity for tactical propulsion systems in the United States. Since then, the company has signed agreements with the US Armed Forces and defence contractors Raytheon and Lockheed Martin in 2024 and 2025.
In September 2025, the company announced plans to build a new $500 million, 860,000-square-foot (approximately 80,000-square-metre) US-based production facility, later revealing in February that it would be built in Hurt, Virginia. The facility’s construction is being funded through a €400 million capital increase that closed in late November 2025, broadening the company’s international shareholder base.
On 29 January, Avio announced that it would convene an Extraordinary Shareholders’ Meeting to vote on a series of amendments to its bylaws. Notably, the amendments proposed fixing the number of directors on Avio’s board at nine and reducing the number of directors that minority shareholders would appoint from three to two.
Avio CEO Giulio Ranzo explained that the changes to the board’s size were essential to ensure the company could better manage its increased exposure to the US market by appointing “more experienced” directors who require remuneration commensurate with their “sophisticated competencies.” He added that limiting the number of seats would allow the company to accommodate the increase in board members’ remuneration without adding additional fixed costs to its balance sheet.
The Extraordinary Shareholders’ Meeting was held on 3 March, with the resolution receiving 82.01% support from the share capital present. However, 17.99% voted against it, indicating a notable level of dissent among shareholders. For context, around 20% opposition is generally viewed as a threshold for strong shareholder dissent and would typically trigger engagement between a company and its investors. As a result, while short of what is often considered a shareholder protest vote or shareholder revolt, the outcome suggests significant opposition to the proposed changes.
On 6 March, just days after the company’s shareholders passed the amendments to its bylaws, Avio announced that Defense Systems and Solutions, a joint venture between Yulista Integrated Solutions and Science and Engineering Services, had been awarded a $65 million contract.
According to the company, the contract covers the “development, qualification and initial production of a solid rocket motor for air defence applications.” It covers a three-year period and will initially leverage the company’s existing development and production facilities in Colleferro, Italy. However, Avio added that full series production, expected to begin in 2029, may take place at its new facility in Hurt, Virginia.
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