Orbex Faces Administration Amid Funding Challenges

UK-based rocket manufacturer Orbex has announced its intention to appoint administrators after failing to secure necessary funding for its Prime microlauncher project. Founded in 2015 and headquartered in Forres, Scotland, Orbex has been developing a low-carbon rocket designed to carry payloads to low Earth orbit. The company had aimed to conduct its first test flights later this year but has now put those plans on hold due to financial difficulties.

Scottish rocket firm Orbex set for administration after funding failureOrbex shows new Prime assembly images after administration notice filed‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

Orbex was part of a growing UK space sector, which has seen a 3% annual growth since 2010, generating £18.6 billion in income for 2022-23. The company, alongside its competitor Skyrora, was pivotal in the UK’s ambitions for domestic vertical launches. Orbex's Prime rocket featured innovative technologies, including a 3D-printed engine and a bio-propane propellant aimed at reducing launch emissions by 90%. However, the capital-intensive nature of rocket development has created significant funding challenges, leading to the current crisis.

Scottish rocket firm Orbex set for administration after funding failure‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launchOrbex shows new Prime assembly images after administration notice filed

Phil Chambers, CEO of Orbex, expressed disappointment over the situation, emphasizing the impact on skilled jobs and the broader UK space ambitions. Andy Bradford, the company's chief technology officer, highlighted the technological advancements made by Orbex, stating, “We were on the brink of something incredibly special.” Skyrora, Orbex's main competitor, has expressed interest in acquiring select assets to preserve UK space capabilities.

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

A spokesperson for the UK government acknowledged the challenges faced by Orbex, stating, “Space launch is a highly competitive sector, and it has always been the case that some companies will succeed, while others will fail.” They reaffirmed the government's commitment to supporting the UK space sector, which includes over 1,900 innovative companies.

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

The potential administration of Orbex puts approximately 163 jobs at risk, including 154 in Forres and additional roles in Denmark. The situation has raised concerns about the future of skilled employment in the UK space industry. Chambers noted, “Yet all of this progress now risks being undone – and it is real people who will feel the consequences.”

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

While Orbex has stated it will continue trading while exploring options for its future, including potential sales of assets, the outcome remains uncertain. Discussions with potential acquirers, including The Exploration Company, have not yielded results. The company had previously received £26 million in UK government loans to support its development efforts.

Scottish rocket firm Orbex set for administration after funding failure

As Orbex navigates its financial crisis, the UK space sector faces uncertainty. The company had planned to shift its launch operations to SaxaVord Spaceport in the Shetland Islands, but this move is now jeopardized. Skyrora has indicated it is prepared to invest up to £10 million to acquire select assets, aiming to protect the UK’s space capabilities.

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

• “Disappointing doesn’t come close to describing how we feel about this moment,” — Phil Chambers, CEO of Orbex

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

• “These images show just how close we were.” — Andy Bradford, Chief Technology Officer of Orbex

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

• “ While a government spokesperson said it would be inappropriate to comment on commercial discussions, they added: “We remain committed to supporting our dynamic space sector.” — UK Government Spokesperson

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch

• “For us, fortunately, it is business as usual as we work with our other clients on testing, test flights and launches in the months and years ahead.” — Scott Hammond, CEO of SaxaVord Spaceport

‘Disappointing doesn’t come close’: UK rocket firm Orbex entering administration before making first launch