Two Southern California firms are adding to the resurgence of the region’s aerospace and defense industry with major contract and funding announcements.
Rocket Lab Corp. has won a $266 million Space Force contract, its largest launch award to date, while JetZero is pursuing up to $3 billion in financing for its planned commercial jetliner manufacturing plant.
The two Long Beach-based companies are among a new generation of aerospace and defense firms driving industry growth, joining Orange County firms such as the $61 billion-valued Anduril Industries in Costa Mesa and Huntington Beach-based Mach Industries.
“The size and scale of this contract reflects the Space Force’s confidence in our ability to meet their urgent national security demands with speed, responsiveness,” Rocket Lab founder and CEO Peter Beck said July 27.
The company said Aug. 5 it had been awarded another Space Force contract, this one worth $397 million for surveillance satellites.
The company is releasing second-quarter earnings on Aug. 10.
Under the Space Force contract, Rocket Lab will conduct 12 suborbital launches, with up to six additional launches (Nasdaq: RKLB). The first launch is expected no earlier than the end of 2026.
JetZero Pursues Up to $3B in Financing
Long Beach is also the site of a new concept for commercial passenger airplane travel.
Inside a hangar at the city’s airport, JetZero is developing the Z4 wedge-shaped passenger plane to cut fuel use and improve rider comfort.
JetZero said July 20 it had signed a “letter of interest” with the Export-Import Bank of the United States to explore up to $3 billion in potential financing support for the $4.7 billion plant in Greensboro, North Carolina.
The letter is not a commitment for the loan and further discussions would be needed.
The EXIM Bank is the official export credit agency of the United States, supporting American job creation, prosperity and security through exporting.
JetZero is constructing an 8 million-square-foot manufacturing and final assembly complex on more than 600 acres in Greensboro. The company expects to invest more than $4.7 billion and create about 14,500 direct jobs over the next decade.
The Business Journal last year reported JetZero’s efforts; the Wall Street Journal on July 29th also highlighted the company in an article.
The plane is expected to enter service early in the next decade.
Gulf Air Letter of Intent
Gulf Air, the national carrier of Bahrain, has signed a letter of intent with JetZero for an undisclosed number of Z4 aircraft with preferential delivery positions in the early 2030s, to support their growing network throughout Europe and Asia.
“Gulf Air is building for its future as a premium key connector, and we believe the Z4 will help power that future,” said Tom O’Leary, JetZero CEO and co-founder.
JetZero also has varying forms of support and backing from other carriers, including support and backing from other carriers including an investment from United Airlines. It also received a $235 million contract from the U.S. Air Force.
The Z4 jetliner is designed to hold about 250 passengers.