ROME (Reuters) -Italian rocket maker Avio approved a 400-million-euro ($468.96 million) capital increase plan on Thursday to finance expanded manufacturing capacity at a time of robust opportunities in the global space and defence industries.
In its new 10-year business plan, the group is targeting a 10% average annual growth of revenue and a 15% rise in core profit.
“The acceleration of growth opportunities in the space and defense markets in Europe and the United States will require the strengthening of the Company’s production capacity, both in Italy and in the United States, together with greater vertical integration,” Avio said in a statement.
In the space sector, Avio, now both the provider and the operator of the Vega-C rocket, plans to increase the launch frequency of the Italian launcher, advance the development of the Vega E platform, and continue supplying propellants for Ariane rockets.
In the defence sector, Avio plans to invest further in propulsion technologies and is building a new manufacturing facility in the United States, expected to be operational by the end of 2028.
The capital raise, scheduled to be completed by year-end, will be executed in one or more tranches and is fully backed by a pre-underwriting agreement with Jefferies and Morgan Stanley.
($1 = 0.8530 euros)
(Reporting by Giulia Segreti; Editing by Sherry Jacob-Phillips)
