OHB's CEO expresses concerns over a potential European space collaboration
BERLIN — The head of German space company OHB, Marco Fuchs, has voiced his worries about a proposed joint venture involving three of his competitors, despite the company's optimism about the expanding European space market. During an earnings call on November 13, Fuchs discussed OHB's stance on the collaboration between Airbus Defence and Space, Leonardo, and Thales Alenia Space, which could significantly impact the company's position in the industry.
Fuchs highlighted the potential challenges this joint venture poses to OHB's existing roles and partnerships. He mentioned that OHB has previously worked with Thales Alenia Space, which could affect their future collaboration opportunities and supply chain dynamics. The companies involved in the proposed venture, Airbus, Leonardo, and Thales, announced their intention to form a joint venture named Project Bromo on October 23, with the aim of combining their space businesses. The process of finalizing this venture, including securing European antitrust approvals, could take up to two years.
While the companies argue that the joint venture is necessary to compete with U.S. space businesses, Fuchs expressed skepticism. He questioned the need for consolidation in a growing market, suggesting that it might put pressure on OHB's European business model. Fuchs emphasized the importance of institutional customers and their desire for competitive offerings, indicating that OHB will actively communicate its concerns in the coming weeks and months.
OHB's executives also highlighted the increasing demand for space services from European governments. Germany's plans to invest 35 billion euros in military space systems over the next five years, and the potential for additional civil space spending once the European Space Agency finalizes its budget, indicate a significant growth in European space spending. The European Commission's announcement of a 131 billion euro defense, space, and security funding package further supports this trend.
Markus Moeller, OHB's Chief Strategy and Business Development Officer, predicts that Europe's space spending could double in the coming years, creating a 'hot market' for space-related projects. This optimism is further bolstered by OHB's recent announcement of a new venture, the European Spaceport Company, aimed at promoting the development of spaceports in Europe, including both land-based and sea-based platforms.
The company's previous efforts, such as the German Offshore Spaceport Alliance, have led to the design of a mobile, multi-user launch pad that can support various rocket types. OHB plans to explore this concept at Kourou, French Guiana, while also working on a European offshore launch pad. Fuchs believes that this venture will enhance Europe's spaceport infrastructure, making it more resilient and adaptable.
