Orbex to Appoint Administrators After Funding Failure
Scottish rocket manufacturer Orbex has announced its intention to appoint administrators following an inability to secure sufficient funding.
In an official statement, Orbex, which employs approximately 160 people, indicated it will maintain normal operations while exploring alternatives but has been unsuccessful in obtaining funds, a merger, or a buyer.
The company stated that appointing administrators would offer short-term protection for its creditors, employees, and wider stakeholders.
Impact on Employees and Regional Economy
Highlands and Islands Enterprise (HIE), which has invested millions of pounds in the Moray-based firm, acknowledged the significant impact this development will have on Orbex's employees and their families.
Orbex is headquartered in Forres on the Moray coast, where all but nine of its workforce are located.
The company has been preparing for the inaugural launch of its relatively small and low-cost rocket, Prime, scheduled for later this year at SaxaVord Spaceport in Shetland. This launch aims to establish Prime as a commercial satellite launch vehicle.
Failed Sale and Funding Efforts
Orbex's announcement follows earlier disclosures that it had been in negotiations to sell the business to international aerospace firm The Exploration Company (TEC).
Despite support from private investors, European venture capital, and the UK government, Orbex reported it was unable to secure critical Series D funding.
Merger and takeover discussions have also collapsed, leaving the company facing financial uncertainty.
CEO's Statement on the Situation
Chief Executive Phil Chambers commented on the company's position:
"We are on the cusp of our first test flights this year and have worked tirelessly to find funding or rescue solutions."
"Disappointing doesn't come close to describing how we feel about this moment."
"What is most disappointing is that we have brought hundreds of skilled jobs to Scotland; we have been at the vanguard of the UK's space ambitions; we have led the way in driving good news about the UK's space sector."
"Yet all of this progress now risks being undone - and it is real people who will feel the consequences."
HIE Response and Regional Significance
Highlands and Islands Enterprise issued a statement saying:
"This situation will be a major blow to Orbex, its employees and their families."
"We will work with our partners through Pace (partnership action for continued employment) to do all we can to help those facing redundancy."
"We'll also be working with the administrators to help secure the best possible outcome for employees and for the region's economy."
The statement further noted:
"From its base in Moray with its highly-skilled workforce of more than 150 people, it has made significant progress in developing the industry in the Highlands."
"The region has the natural geographical assets that make it an ideal location for satellite launch sites. We also have enhanced expertise, in no small part developed by Orbex through its work in Moray."
"All of this means we continue to have a huge amount to offer potential investors in the space sector, and the industry continues to present a significant economic opportunity for the region and for Scotland."
Impact on SaxaVord Spaceport
A spokesperson for Shetland's SaxaVord Spaceport stated that Orbex's move into administration will have "very little impact" on their operations.
