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Avio breaks ground on $500M rocket motor plant in Virginia

Avio breaks ground on $500M rocket motor plant in Virginia

Built World

Italian aerospace firm's first US factory answers Pentagon's missile capacity shortfall

2 days ago: Avio USA breaks ground on Virginia rocket motor plant

Overview

Updated 1 hour ago

Almost two decades after Burlington Industries shut its textile mill in Hurt, Virginia, and idled 1,300 workers, the same industrial park is getting a new tenant. Avio USA broke ground this week on a $500 million solid rocket motor plant that promises 1,500 jobs, more than the town's entire population of about 1,300.

The facility, Avio's first US factory, will produce thousands of solid rocket motors a year for tactical missile programs. Lockheed Martin and Raytheon already hold agreements for preferred access to the plant's capacity. Construction is set to finish in late 2028, with production starting in early 2029. Avio has a standing commitment to hire and train local workers, with annual wages around $81,000, well above the county average of about $49,000.

Why it matters

The plant adds domestic rocket motor capacity the Pentagon has been short on, anchoring 1,500 manufacturing jobs in a region that lost its textile base.

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Key Indicators

$500M
Investment
Capital investment in the Virginia facility.
1,500
Jobs promised
Planned jobs at the Hurt facility, exceeding the town's population.
$81K
Average annual wage
Averaging well above Pittsylvania County's $49K average wage.
4
Initial production lines
Including the Mk 104 second-stage motor for Standard missiles.
900,000 sq ft
Facility size
Manufacturing plant at the Southern Virginia Multimodal Park.
$97.7M
State incentive eligibility
Special appropriation tied to investment above $500M and 1,000+ jobs.

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People Involved

Organizations Involved

Timeline

November 2025 September 2026

5 events Latest: 2 days ago
Tap a bar to jump to that date
  1. Avio USA breaks ground on Virginia rocket motor plant

    Latest Construction

    Avio USA held its formal groundbreaking at the Southern Virginia Multimodal Park in Hurt, Virginia, with HITT Contracting as general contractor. Construction runs through late 2028; production starts early 2029.

  2. Avio says plant design progressing

    Development

    Avio told investors the plant design was moving forward and long-lead process equipment orders were underway.

  3. Avio wins $65M air-defense motor contract

    Contract

    Defense Systems and Solutions, a joint venture of Yulista and Science and Engineering Services, awarded Avio a three-year, $65 million contract to develop and produce an air-defense rocket motor.

  4. Governor announces Avio's $500M Virginia investment

    Announcement

    Governor Abigail Spanberger revealed Avio USA would invest more than $500 million in a Pittsylvania County plant creating 1,500 jobs.

  5. Lockheed Martin signs capacity term sheet

    Agreement

    Lockheed Martin secured preferred access to a portion of Avio's planned plant capacity for tactical and strategic solid rocket motors.

Scenarios

1

Avio Virginia plant starts production in 2029

Likely Resolves by End of 2029

Discussed by: Avio company statements; ENR construction reporting

The straight-line case. Avio expects construction to finish in late 2028 and production to begin in early 2029. Long-lead process equipment orders are already placed, and HITT Contracting has begun mobilization. If the schedule holds, the plant adds thousands of solid rocket motors a year to US capacity, with the Mk 104 line serving Standard missile programs for Raytheon.

2

Construction slips past 2028, pushing production to 2030

Possible Resolves by End of 2028

Discussed by: ENR noted the final construction plan is still being developed

Large defense construction projects routinely slip. ENR reported that HITT's final construction plan for the 900,000-square-foot plant is 'still being developed.' Permitting delays, materials shortages, or labor constraints could push the completion date into 2029 or later, which would extend the Pentagon's wait for new rocket motor capacity just as missile demand rises.

3

Avio expands plant beyond initial four production lines

Possible Resolves by Q2 2030

Discussed by: Defense Daily initial reporting on four lines; defense market demand trajectory

The plant opens with four production lines, including the Mk 104 motor for Standard 2, 3, and 6 missiles. If US missile demand stays elevated (Ukraine replenishment, Indo-Pacific readiness), Lockheed Martin and Raytheon could increase their capacity claims, pushing Avio to add lines or expand the building. Avio also has a pipeline contract with Defense Systems and Solutions for air-defense motors that could approach full-rate production using this facility.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2007

Burlington Industries closes Klopman Mills (2007)

Burlington Industries shut its textile mill at the site now known as the Southern Virginia Multimodal Park. The plant, formerly Klopman Mills, employed about 1,300 workers in Hurt, a town of roughly 1,300 residents. The closure mirrored the broader collapse of US textile manufacturing in the early 2000s.

Then

1,300 jobs vanished from a community that depended on the mill, deepening regional economic decline.

Now

The site sat mostly idle for years before being redeveloped as an industrial park. The loss shaped the region's push for large-scale economic development projects.

Why this matters now

Avio's plant promises 1,500 jobs, more than the mill's peak employment, on the exact site where those jobs were lost. It is the same pattern of a single large employer anchoring the local economy.

2024

Microporous announces $1.3B investment at Southern Virginia Megasite (2024)

Microporous, a lithium-ion battery separator manufacturer, announced a $1.3 billion investment and more than 2,000 jobs at the Southern Virginia Megasite at Berry Hill, about 40 miles from Hurt. It was the largest economic development deal in Southside Virginia history.

Then

Established Southside Virginia as a viable location for advanced manufacturing mega-projects and validated the region's workforce development pipeline.

Now

Created a template for recruiting large industrial investors to the region: graded megasites, local workforce training, and coordinated state and local incentives.

Why this matters now

Avio's $500 million deal is the second-largest in the region's history, following the Microporous playbook. Together, the two projects signal a shift in rural Virginia from manufacturing decline toward advanced manufacturing.

Sources

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