Moray-based Scottish aerospace company Orbex is said to be on the brink of putting itself into administration after it missed out on securing emergency funding. The firm has a staff of just under 160 employees. It has received robust support from private investors, European venture capital and the UK government. Yet its failure to close a one billion dollar Series D funding round has put its future in peril.
Founded with the aim of developing a low-cost commercial launch vehicle for satellites, Orbex has made strides in advancing the aerospace industry in the Highlands. The company is helping to position Scotland as a global space industry leader. It’s a testament to the high degree of technical sophistication developed through its experience operating in Moray.
Despite promising developments, including plans for a launch later this year at SaxaVord Spaceport in Shetland, Orbex has struggled to find a merger partner or a buyer. The firm has been negotiating with The Exploration Company (TEC), an international aerospace firm, on terms of a sale. The two sides have still not come to an agreement.
Phil Chambers, the CEO of Orbex, said he was disappointed with the outcome.
“Disappointing doesn’t come close to describing how we feel about this moment,” – Phil Chambers
Chambers pointed to the 150 higher-value jobs that Orbex has already created. He underscored the importance of the company’s work in helping to deliver the UK’s space ambitions and supporting the growth of the local economy.
“What is most disappointing is that we have brought hundreds of skilled jobs to Scotland; we have been at the vanguard of the UK’s space ambitions; we have led the way in driving good news about the UK’s space sector,” – Phil Chambers
The company’s success lies with the amazing men and women that make up the company’s workforce. Over 150 talented workers have set the stage for numerous successful satellite launches to come. Highlands and Islands Enterprise (HIE) have played their part, providing millions of pounds in funding to support Orbex’s work.
These upheavals may have long-term impacts on the business and its workers. Chambers stressed that even the slightest loss of momentum threatens to reverse decades of work.
“Yet all of this progress now risks being undone – and it is real people who will feel the consequences,” – Phil Chambers
Orbex will live to fight another day while casting around for any possible flight path into its future. The company is committed to supporting its employees and will collaborate with partners through Pace (Partnership Action for Continued Employment) to assist those facing redundancy.
While Scotland’s space sector is rapidly expanding, those involved with the industry insist it is still a land of opportunity for future investors.
“The region has the natural geographical assets that it an ideal location for satellite launch sites. We also have enhanced expertise, in no small part developed by Orbex through its work in Moray,” – [No specific source mentioned]