In a significant development for the UK's burgeoning space industry, rocket company Skyrora has confirmed it is actively exploring the purchase of select assets from Orbex, a fellow space firm that has announced plans to appoint administrators. This potential acquisition, valued at up to £10 million, includes the critical Sutherland Spaceport scheme and aims to safeguard British technological sovereignty.
Orbex Enters Administration Amid Funding Crisis
Orbex, an orbital launch services company and space rocket manufacturer headquartered in Forres, Moray, revealed on Wednesday that it has filed a notice of intention to appoint administrators. This decisive step comes after the company failed to secure the necessary funding to sustain its operations, despite being on the verge of conducting the first test launches of its microlauncher, Prime, later this year.
The company, which employs 163 people—with 154 based in Forres and the remainder working remotely—has stated it will continue trading while exploring all future options. These include the potential sale of all or parts of its business or assets. Notably, in December 2024, Orbex paused its plans to construct a spaceport in Sutherland but retained its lease to build and operate there, a key asset now under consideration by Skyrora.
Skyrora's Strategic Move to Bolster UK Space Capabilities
Skyrora, which operates a factory in Cumbernauld, North Lanarkshire, and was granted a launch licence for its suborbital rocket Skylark last year, views this potential acquisition as a strategic opportunity. Dr Jack-James Marlow, chief operations officer at Skyrora, emphasized the company's commitment to delivering sovereign launch capability for the UK, highlighting that reliable, independent access to space is crucial to the nation's strategic interests.
"Launch will not only unlock commercial activity for companies that need to access space and help achieve the Government’s objectives for becoming a global player in the space sector, but it is also a strategic defence consideration," Dr Marlow stated. He further noted that Skyrora, as the only UK company with a domestic launch licence and both manufacturing and testing capabilities, is ideally positioned to take over Orbex's assets and lead launch activity from the UK.
Implications for National Infrastructure and Industry
Skyrora has underscored that securing select Orbex assets would ensure that technology developed within the UK remains under domestic ownership, thereby helping to protect national critical infrastructure. This move aligns with broader governmental ambitions to establish the UK as a formidable player in the global space arena, fostering innovation, economic growth, and security.
However, any potential asset acquisition is contingent upon discussions with the appointed administrators and the completion of necessary due diligence and legal processes. Skyrora's exploration of this deal reflects the dynamic and competitive nature of the space sector, where consolidation and strategic partnerships are becoming increasingly common as companies navigate funding challenges and technological hurdles.
As the UK space industry continues to evolve, this development highlights the importance of resilient business models and collaborative efforts to sustain momentum. The outcome of Skyrora's negotiations could significantly influence the trajectory of space exploration and commercial activities in the region, setting a precedent for future investments and innovations in this high-stakes field.
