A potential shakeup in the European space industry has sparked concerns among key players, with the head of German space company OHB, Marco Fuchs, expressing apprehension about a proposed joint venture among three of his competitors. This joint venture, code-named Project Bromo, aims to combine the space business units of Airbus Defence and Space, Leonardo, and Thales Alenia Space. Fuchs believes this move could threaten OHB's position in the industry, especially on the European level.
OHB has previously collaborated with Thales Alenia Space, and Fuchs highlights the impact this joint venture could have on their teaming and supply chain opportunities. He questions the need for consolidation in a growing market, stating, "It's creating an environment where our European business model is under pressure."
The companies behind Project Bromo argue that they need to scale up to compete with U.S. counterparts, but Fuchs remains skeptical. He plans to actively communicate OHB's concerns to institutional customers, who are primarily European governments, as he believes they should have access to competitive offerings.
However, there's a silver lining for OHB. The company foresees a significant increase in European government spending on space services. Germany's plans to invest $41 billion in military space systems over the next five years, coupled with expected civil space spending from the European Space Agency, paint a promising picture. Additionally, the European Union's intention to allocate a substantial amount for defense, space, and security in its next multiannual financial framework further boosts OHB's optimism.
Markus Moeller, OHB's chief strategy officer, believes Europe could double its space spending in the coming years, describing it as a "hot market."
But here's where it gets interesting. OHB is not just reacting to these industry changes; they're also taking proactive steps. Two days before the earnings call, OHB announced the creation of the European Spaceport Company, a venture aimed at developing spaceports in Europe, including both land-based and sea-based platforms. This initiative builds on their previous work with the German Offshore Spaceport Alliance, which studied a mobile launch platform for the North Sea.
OHB's new venture will explore using a multi-user launch pad concept at Kourou, French Guiana, and also work on a European offshore launch pad. Fuchs believes this move will provide Europe with a more resilient spaceport and launch infrastructure.
So, while OHB navigates the challenges posed by Project Bromo, they're also seizing opportunities to shape the future of European space exploration. It's a delicate balance, and one that OHB seems determined to influence.
What do you think? Is consolidation among European space companies necessary to compete globally, or does it threaten innovation and competition? Share your thoughts in the comments!
