Marco Fuchs, the chief executive of German space company OHB, has voiced concerns regarding a proposed joint venture involving three of its competitors. This announcement comes even as the company anticipates new prospects stemming from the escalating investments in the European space sector.
During an earnings call on November 13th, discussing OHB’s third-quarter financial performance, Fuchs stated that the potential joint venture between the space business divisions of Airbus Defence and Space, Leonardo, and Thales Alenia Space presents a significant challenge to OHB. “This is concerning. We are concerned about our roles in the space industry, especially on the European level,” he said.
Fuchs emphasized that OHB has previously collaborated with Thales Alenia Space, one of the prospective partners in the joint venture. “This impacts our teaming opportunities. This impacts our supply chain opportunities,” he noted. The memorandum of understanding to establish the joint venture, codenamed Project Bromo, was announced by Airbus, Leonardo, and Thales on October 23rd. The finalization of this venture, which includes obtaining approvals from European antitrust authorities, could take up to two years.
While the involved companies argue that this joint venture is essential to achieve the scale needed to compete with their U.S. counterparts, Fuchs expressed skepticism. “In a growing market, it’s a question why consolidation is going on,” he said. “It’s creating an environment where we feel that our European business model is coming under pressure and is being threatened,” he continued. He also added: “We believe that institutional customers want to continue to have competitive offerings, and this is something that we will obviously actively communicate in the next weeks and months.”
Fuchs emphasized the importance of institutional customers, as their business primarily originates from European governments. He clarified that the joint venture would not encompass stakes in launch activities, such as Airbus's holdings in ArianeGroup. “We will be vocal. We will defend our interests,” he asserted. “But we are obviously open to discuss with everybody involved — governments, industrial players, regulators — in order to raise our concerns and our view.”
Despite these concerns, OHB anticipates a surge in demand for space services from European governments. Executives mentioned Germany's plans to allocate 35 billion euros ($41 billion) to military space systems over the next five years, along with expectations of increased civil space expenditure following the European Space Agency's budget finalization at its ministerial conference later this month. Furthermore, there is the possibility of additional space funding from the European Union.
The European Commission announced its intention to allocate 131 billion euros for defense, space, and security in its upcoming seven-year multiannual financial framework, commencing in 2028. This figure represents a fivefold increase compared to the current budget. Although the announcement did not specify the exact amount allocated to space programs, OHB believes that the combined EU spending, alongside investments from ESA and national governments, will lead to a substantial increase in overall European government space spending.
Markus Moeller, OHB’s chief strategy and business development officer, suggested that Europe could potentially double its space spending in the coming years. “The general take is that Europe in total in the next years will massively increase spending on space,” he said. “You may want to call it a hot market.”
Prior to the call, OHB unveiled the creation of a new venture, the European Spaceport Company, aimed at fostering the development of spaceports in Europe, encompassing both land-based and sea-based platforms. This venture builds upon the previous German Offshore Spaceport Alliance, involving OHB and other companies in the study of a mobile launch platform for the North Sea, which received funding from the German government.
The study resulted in a design for a mobile, multi-user launch pad capable of supporting various types of rockets, thereby minimizing the need for vehicle-specific infrastructure. OHB stated that the new company will initially focus on implementing this concept at Kourou, French Guiana, while simultaneously pursuing the development of a European offshore launch pad. “At OHB, we are experts in launch sites and infrastructure, and we are closely connected to developments in the market, which we leverage to the benefit of our customers,” said Sabine von der Recke, an OHB board member leading the European Spaceport Company, in a statement.
Fuchs highlighted that the venture will leverage the experience of MT Aerospace, which has contributed to spaceport infrastructure in Kourou for almost 30 years. OHB acquired the remaining 30% of MT Aerospace on October 29th. “This is something we believe is an attractive opportunity for Europe to have a more resilient spaceport, launch and ground infrastructure capability,” he concluded.