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Firm says it is ‘best placed’ to take over troubled competitor’s assets
The Scottish rocket manufacturer, Skyrora, is considering purchasing the Sutherland spaceport site and other assets from one of its main competitors, Orbex, after the firm appointed administrators.
Skyrora, which last year became the first UK-based rocket company to receive a space launch licence, said it plans to “explore the purchase” of assets held by Orbex, which has struggled to secure sufficient funding.
Orbex, which is headquartered at Forres on the Moray coast, has been planning the first launch of its relatively low-cost rocket, Prime, later this year at SaxaVord Spaceport in Unst, Shetland, with the prospect of becoming a commercial launch vehicle for satellites.
Skyrora has confimed it is exploring the purchase of certain assets of the rocket launch firm, Orbex, after it appointed administrators. Picture: Michal Wachucik/AFP/Getty | AFP via Getty ImagesThe orbital launch firm, which employs about 160 people, has said it will continue to operate as normal while “all options for the future of the company are explored,” including the potential sale of all or parts of its business or assets.
It said the funding required for it to remain as a “viable business” was sought from a variety of public and private investors during its series D funding round, which had “ultimately failed.” The company added that several merger and acquisition opportunities have also been explored, with “none resulting in a favourable outcome.”
“It is no secret that designing and building space rockets to enable a launch service is a capital-intensive, highly advanced process with a long development cycle that creates a ‘scale-up’ funding gap,” Orbex’s CEO, Phil Chambers, said. “Institutional support is crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.”
Highlands and Islands Enterprise is among the backers of Orbex, having awarded it £3.7 million since 2020. It also has a 50 year-long lease with the firm for a launch facility west of Tongue, although those plans were paused in December 2024.
The economic development agency said it was working with its partners and the administrators to secure the “best possible outcome.” As a creditor, it will also be seeking to recover funds through the administration process.
The UK government also made a direct investment of £20m in the firm last year, with technology secretary, Peter Kyle, stating that the financing would “turbocharge the country’s position in the space sector.”
Orbex had been planning at launch at SaxaVord spaceport in Unst, Shetland, later this year. Picture: SaxaVord/PA Wire | PAAmid fears for the future of the firm and its workforce, Skyrora, based in Cumbernauld, North Lanarkshire, has confirmed it is exploring an asset acquisition which would see it invest up to £10m, subject to discussions with the appointed administrators and completion of the necessary due diligence and legal processes.
Dr Jack-James Marlow, Skyrora’s chief operating officer, explained: “Skyrora is committed to delivering sovereign launch capability for the UK; providing reliable, independent access to space is crucial to the UK’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.
“As the only UK company with a domestic launch license and both manufacturing and testing capabilities, Skyrora is best placed to take over Orbex’s assets and is proud to be leading launch activity from the UK.”
It is understood that any potential offer will depend on further discussions, due diligence, and the negotiation and execution of definitive agreements. However, the potential deal is viewed as a key way of protecting national critical infrastructure, and ensuring that technology and IP developed in the UK remains under UK ownership.