Italian rocket company Avio commits $469 million to expand operations
The Italian rocket company Avio, which owns the Vega-C rocket, today announced that is has approved a $469 million fund to expand its manufacturing capabilities, including building a production facility in the United States.
Announced on 12 September, the capital raise is part of a new ten-year business plan targeting an average annual growth rate of about 10% in turnover and more than 15% in core profit (EBITDA). This growth will be driven by a higher Vega C launch cadence, the introduction of Vega E, continued participation in the Ariane 6 programme, and the construction of a new defence production facility in the United States, which is expected to be completed by 2028.
The management of Vega-C had previously been controlled by the European Space Agency’s (ESA) commercial arm, Arianespace, which had owned and operated all of Europe’s rockets. ESA however is eliminating that commercial arm, shifting from the government-run model to the capitalism model, whereby it simply acts as a customer buying services from the private sector.
As part of that shift, Avio is in the process of taking back its Vega-C from Arianespace. Beginning next year it will be marketing the rocket directly to customers. This major investment reflects this change. The company is now free to pursue profits wherever it can find them, and it appears it wishes to market itself aggressively to American satellite companies as well as its defense industry.
The Italian rocket company Avio, which owns the Vega-C rocket, today announced that is has approved a $469 million fund to expand its manufacturing capabilities, including building a production facility in the United States.
Announced on 12 September, the capital raise is part of a new ten-year business plan targeting an average annual growth rate of about 10% in turnover and more than 15% in core profit (EBITDA). This growth will be driven by a higher Vega C launch cadence, the introduction of Vega E, continued participation in the Ariane 6 programme, and the construction of a new defence production facility in the United States, which is expected to be completed by 2028.
The management of Vega-C had previously been controlled by the European Space Agency’s (ESA) commercial arm, Arianespace, which had owned and operated all of Europe’s rockets. ESA however is eliminating that commercial arm, shifting from the government-run model to the capitalism model, whereby it simply acts as a customer buying services from the private sector.
As part of that shift, Avio is in the process of taking back its Vega-C from Arianespace. Beginning next year it will be marketing the rocket directly to customers. This major investment reflects this change. The company is now free to pursue profits wherever it can find them, and it appears it wishes to market itself aggressively to American satellite companies as well as its defense industry.