A UK-based rocket manufacturer has become the latest business to crash-land into administration after failed merger and acquisition attempts. Orbex, which was founded in the UK in 2015 and has since become one of Europe’s leading aerospace firms, appointed administrators this week, putting 163 UK jobs at risk. The company employed the majority of its employees at a base in Moray, Scotland, alongside a leased site in Sutherland and presence in Denmark.
CEO Phil Chambers said in a statement: “Disappointing doesn’t come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights this year.” He added that “designing and building rockets” was a “capital-intensive, highly advanced process” and said higher-ups had “worked tirelessly to try to find both funding or rescue solutions”.
Mr Chambers continued: “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.
“Yet all of this progress now risks being undone – and it is real people who will feel the consequences.”
Orbex had been developing a new rocket called Prime for launching small satellites into a low Earth orbit before the administration filing.
Rising wage and running costs have been linked to a spike in the number of UK firms collapsing into administration in recent months, with the percentage jumping by 41% between December and January, according to the Insolvency Service.
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Joint administrator Chad Griffith told the BBC: “Orbex was at the forefront of the UK’s ambitions to create a sovereign space launch capability, and has made significant technological process in recent years.
“Our focus now is on supporting employees and engaging with potential interested parties to preserve value in the business assets and seek to retain space launch operations in Forres given the investments already ,ade.
“We are already in contact with more than 20 potential suitors and encourage any further approaches from prospective buyers or investors to come forwad.”