China Great Wall Industry Corporation (CGWIC) has signed a bulk purchase framework agreement with China Academy of Launch Vehicle Technology (CALT) and China Academy of Space Technology (CAST) for 20 Long March 3A series rockets and 8 DFH-4…
China Great Wall Industry Corporation (CGWIC) has signed a bulk purchase framework agreement with China Academy of Launch Vehicle Technology (CALT) and China Academy of Space Technology (CAST) for 20 Long March 3A series rockets and 8 DFH-4 communications satellites respectively.
The contract, which was signed at the 8th China International Aviation & Aerospace Exhibition, is worth Y15bn (US$2.26bn) over the next five years.
CGWIC said that the bulk purchase was part of its strategy of expanding its capacity in order to increase its market share. CGWIC stated: “By commencing the manufacture of launch vehicles and communications satellites in advance, it (CGWIC) can shorten the delivery schedule of the product in response to the market demand so as to increase the competitiveness of Long March launch services and Dong Fang Hong communications satellites.” “It is a significant measure to realize CASC’s target to acquire 10% market share in the communications satellite market in 2015, and 15% in the commercial launch market respectively.” However, CGWIC still faces a significant hurdle in achieving these commercial ambitions – the US ITAR (International Traffic in Arms Regulations) act. This prevents any satellites containing US components being launched by a Long March rocket and even prompted the European satellite manufacturers to offer an ITAR-free solution to its customers in order to be able to take advantage of favourable Long March pricing.
In order to expand its international footprint and get around ITAR, CGWIC has tended to target developing countries keen to own a national communications satellite. In these cases CGWIC has usually offered a turn-key solution with both the satellite construction and launch provision. The Export-Import Bank of China has also at times given its support by providing loans to the country, such as the US$180m loan to help fund Pakistan’s Paksat project.
The satellite platform predominantly used in these cases is the DHF-4 bus, which has in recent times suffered a spate of in-orbit anomalies with Sinosat-2, Nigcomsat-1 and most recently Sinosat-6 all suffering technical malfunctions. The next DHF-4’s scheduled to be launched are Paksat-1R and NigComSat-2, both of which are due in orbit in late 2011.
CGWIC, CALT and CAST are all subsidiaries of China Aerospace Science and Technology Corporation (CASC).
