{"id":18090,"date":"2026-02-02T16:57:44","date_gmt":"2026-02-02T16:57:44","guid":{"rendered":"https:\/\/microvibenews.com\/?p=18090"},"modified":"2026-02-02T16:57:44","modified_gmt":"2026-02-02T16:57:44","slug":"orbex-sale-leaves-space-for-funding-rethink-daily-business-magazine","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=18090","title":{"rendered":"Orbex ‘sale’ leaves space for funding rethink \u2013 Daily Business Magazine"},"content":{"rendered":"

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\"Orbex\"<\/figure>\n

Orbex planned rocket launches from Sutherland<\/p>\n

Weeks after staging its biggest show of strength in the space sector, Scotland could see control of one of its key players move abroad, writes TERRY MURDEN<\/strong><\/h4>\n
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Hundreds of delegates descended on Glasgow for the pre-Christmas Space-Comm Expo to celebrate \u201ca jewel in the UK\u2019s advanced manufacturing crown.\u201d They heard that the rapidly growing sector was already adding \u00a31.2 billion to the Scottish economy, and was being positioned as an industry of the future, providing 9,000 jobs, with more promised. <\/p>\n

However, rather than leading this new sector, Scotland could once again be playing a supporting role. A European space startup is in talks to acquire one of its prized assets, Forres-based rocket company Orbex, to develop a continental player of scale in a market dominated by the US. Orbex and The Exploration Company, a French-German company, have entered into exclusive discussions and have signed a non-binding letter of intent.<\/p>\n

Losing an independent player \u2013 and one that has been at the forefront of developments in Scotland\u2019s space industry \u2013 will sound alarm bells about yet another industry being controlled from overseas, with some claiming it is further evidence of a lack of ambition and funding.<\/p>\n

Ahead of the Expo in Glasgow, space tech pioneer Will Whitehorn, former right-hand man to Richard Branson, said the UK and Scottish governments need to raise their game to fully seize opportunities in the sector.<\/p>\n

He said the sector was \u201cgrowing like crazy\u201d and Scotland and the UK had the opportunity to be a big part of the space revolution, though that meant matching other countries which are devoting far bigger resources.<\/p>\n

The UK Space\u00a0Agency\u00a0used the Expo to announce\u00a0that Scottish universities will\u00a0collaborate with partners nationwide to\u00a0receive\u00a0a share of\u00a0\u00a33.8 million from the National Space Innovation Programme. Mr Whitehorn said this is nowhere near enough. Germany, is spending \u20ac35 billion on space tech in the defence sector alone.<\/p>\n

\u201cWe have good ideas and expertise, but getting resources out of government is not as easy as one would expect,\u201d he said. \u201cNeither the Scottish nor UK government have thought hard enough about how much other countries are putting into it.\u201d<\/p>\n

A Scottish Affairs Committee\u00a0report, published in September,\u00a0warned that Scotland was at risk of losing a \u201cgenerational opportunity\u201d to become the European leader in space launch.<\/p>\n

The cross-party committee urged the UK Government to commit to sustained investment in the sector to ensure it retained its \u201cfirst mover advantage\u201d in commercial small satellite launch.\u00a0 The UK government argues that the UK is rapidly building a presence and that the sector is now worth \u00a318bn.<\/p>\n

Orbex was set up in 2015 and seen as spearheading the Scottish space sector. Moray MSP Richard Lochhead described the company as a \u201ctrail blazing space company\u201d and a \u201crising star of Scotland\u2019s space sector\u201d.<\/p>\n

However, the takeover talks have revealed some underlying weaknesses and its\u00a0Danish subsidiary is moving into bankruptcy with 90 employees losing their jobs.<\/p>\n

Orbex had been developing Prime, a low emission micro-launcher designed to place a 200-kilogram payload into low Earth orbit. Its first flight was planned for this year, following several ground-testing phases.<\/p>\n

The company raised \u00a323 million in 2023, including \u00a320m in public funding, and it was one of five companies selected by the European Space Agency to develop micro-launchers. <\/p>\n

Trouble began to emerge with the mothballing of the Sutherland spaceport and a poor Series D funding round which contributed to development being slowed and the need to find a buyer.<\/p>\n

Phil Chambers, CEO of Orbex, admitted that a takeover may be the right move for the company. \u201cOur Series D fundraising could have led us in many directions,\u201d he said. \u201cWe believe this opportunity plays to the strengths of both businesses, and we look forward to sharing more when the time is right.\u201d<\/p>\n

However, some will accuse the UK authorities of failing to follow up fine words about the sector with the required funding to make things happen. <\/p>\n

Just before the takeover talks were announced a European Space Agency document revealed that \u20ac112 million of \u20ac144m of UK government funding earmarked for the European Launcher Challenge (ELC) scheme, was still \u201cto be distributed\u201d.<\/p>\n

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Orbex CEO Phil Chambers: opportunity<\/p>\n

TEC now appears to offer the opportunity that Chambers speaks about for Orbex to be part of a much bigger project. <\/p>\n

Founded in Munich in 2021,\u00a0it has raised \u20ac150 million in less than three years\u00a0and, at the end of 2025, opened a 7,500 sq metre factory in M\u00e9rignac, near Bordeaux. Its first test flight is scheduled for this year. It has contracts in place to provide a cargo-carrying return vehicle to commercial space stations. <\/p>\n

By acquiring Orbex\u2019s assets, TEC would become one of the few European players to combine, within a single entity, the development of reusable space vehicles and its own launch capability. It is also likely to see the Sutherland spaceport as a core asset.<\/p>\n

It is positioning itself as a global business with operations in France, Italy, Luxembourg, as well as the US and the Middle East. Expansion is planned in India, Japan and Australia.<\/p>\n

The market is dominated by US players, while the European sector comprises underfunded companies competing with one another.<\/p>\n

TEC\u2019s founder and CEO H\u00e9l\u00e8ne Huby has declared that her ambition is to build a \u201cEuropean SpaceX\u201d.<\/p>\n

Speaking about the merger talks, she said: \u201cOrbex and TEC are complementary. We are working closely with the UK Government to ensure that our combined business reinforces the UK\u2019s launcher roadmap. We will be respecting the confidentiality of this process and will share more in due course.\u201d<\/p>\n

For Orbex, the deal represents an opportunity to join a better-funded project with a clear roadmap and an already active commercial momentum. <\/p>\n

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