Italian rocket builder Avio has announced that it will build its new US-based solid rocket motor manufacturing facility in Hurt, Virginia. Subject to approval by the Virginia General Assembly, the company will be eligible for a $100 million “special appropriation” to supplement the $500 million it plans to invest in the construction and operation of the new facility.
Avio founded its wholly owned U.S. subsidiary, Avio USA, in 2022 to meet growing demand for solid rocket motors for defence applications. In September 2025, the company announced plans to build a new 860,000-square-foot (approximately 80,000-square-metre) production facility to support agreements signed with the U.S. Armed Forces, Raytheon, and Lockheed Martin. To finance the project, Avio completed a €400 million capital increase by late November 2025, clearing the way for construction to begin in the first half of 2026.
On 11 November 2025, the company announced plans to build its new production facility in the Commonwealth of Virginia, but did not specify a location. On 23 February 2026, it confirmed that the facility would be built in Hurt, Pittsylvania County.
“We are grateful to the Commonwealth of Virginia and Pittsylvania County for their partnership in advancing this strategic investment, which expands Avio USA’s manufacturing footprint and directly supports the Department of War’s effort to significantly ramp missile production,” said Avio USA CEO James Syring.
To support the development of the new facility, the Virginia General Assembly will vote on a proposal from the state’s Major Employment and Investment Project Approval Commission to grant Avio a $97.7 million “special appropriation.” The proposed funding is based on the company’s $500 million investment and its commitment to create more than 1,000 jobs.
Avio’s defence propulsion business has grown from a historical share of roughly 5–6% of group sales to about 20% in 2025. An equity research note attributes the increase largely to heightened demand driven by a “geopolitical environment which led to the ReArm Europe plan.” Supported by new US-based production capacity and contracts from the US Army and Raytheon, analysts expect the division’s contribution to exceed 50% of both sales and EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 2035.
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