Over 150 jobs at risk as Moray-based space firm Orbex set to enter administration

More than 150 jobs are at risk as Moray-based space rocket manufacturer Orbex is set to enter administration.

The orbital launch services company based in Forres said the decision had been taken after unsuccessful fundraising efforts, and merger and takeover talks collapsed.

The firm had been developing low-carbon small and medium-sized space rockets, with initial launch operations scheduled to take place from SaxaVord Spaceport in Shetland.

Orbex said it will continue trading while options for the company’s future are explored, including the potential sale of all or part of the business or its assets.

‘Disappointing doesn’t come close’

Phil Chambers, CEO of Orbex, said: “Disappointing doesn’t come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights later this year.

“It is no secret that designing and building space rockets to enable a launch service is a capital-intensive, highly advanced process with a long development cycle that creates a ‘scale-up’ funding gap. Institutional support is a crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.

“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.”

The spaceflight firm received a £20m funding boost from the UK Government last year to help develop Prime, a 19-metre rocket designed to transport small satellites into orbit. The rocket was due to undergo its first test launches later this year.

The government also became a shareholder in the company as part of its Series D fundraising.

Highlands and Islands Enterprise, which has awarded Orbex £3.7m since 2020, said it will be working with the administrators to “secure the best possible outcome for employees and the region’s economy”.

Major player in UK space sector

A spokesperson said: “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.

“Orbex have kept us informed of the developing situation. The company has been a major player in the UK space sector. 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.”

‘Responsibility lies with UK Government’

Moray West, Nairn and Strathspey MP, Graham Leadbitter, said the responsibility for the company’s downfall “lies with the UK Government” after they pulled funding that would have secured Orbex’s future.

“My immediate concerns are with the 160 employees at Orbex whose jobs are at risk, and it’s vital that all public organisations step in to support the workers through what will be a difficult time”, he added.

“I’ll work with governments of all spheres to not only maintain employment in the area, but ensure we can keep high-skilled jobs in this community.

“But all of this was avoidable – the UK government has long talked up the need to develop sovereign launch capabilities, but has yet to match their rhetoric with action. In fact, in this case, they’ve directly contradicted their own words by sabotaging the future of Orbex.

“I’ll be making urgent representations to the UK Government to find out exactly why they pulled critical funding, and demand they step in to support the company and its workers at this time.”

Moray MSP, Richard Lochhead, added: “The news of Orbex entering administration and the potential loss of so many jobs in Moray is a huge blow for the highly skilled workforce and the local economy.

“Orbex had huge potential to be one of the companies set to play a key role in the European Space Agency’s launch programme, but to get to that stage, these deep tech companies require public support.

“The UK Government – which holds the key purse strings – must invest in and support companies like Orbex if it wants to achieve satellite sovereignty.

“As Moray’s MSP, I am now seeking meetings with the administration, HIE, and Scottish Government Ministers to see if a way forward can be found.”

SaxaVord Spaceport chief executive Scott Hammond said: “While this is a sad day for Orbex, and for its staff who will now be looking for new jobs, it will have very little impact on SaxaVord.

“While we had agreed heads of terms with the company, Orbex had never reached a position to start on site at SaxaVord and let us develop infrastructure for them to launch from.

“Our business model has always been multi-client because, at the outset, we recognised that,, in what is a very competitive rocket launch market not all players would succeed.

“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. SaxaVord is very much ready for launch.

“For the Orbex staff who now find themselves out of work, I am sorry and I wish them well.”

Deputy first minister Kate Forbes said: “This is deeply disappointing news and the loss of highly skilled jobs in Moray will be felt acutely across the local community, the wider economy and Scotland’s growing space sector.

“I have been engaging closely with UK Government Ministers, in the hope that a solution could be found with UK Government funding. It is disappointing that a solution has not been found. We now need clarity on how the UK will protect the Scottish launch sector.

“Scotland has established itself as a leading space nation in Europe, with a strong cluster of advanced manufacturing, launch capability and satellite innovation

“We remain fully committed to supporting Scotland’s space sector and ensuring the talent, expertise and infrastructure built here continue to thrive.”