German manufacturer OHB System has secured a great achievement with its award of the first Galileo construction contract, but it is in the field of geo-stationary satellites where it has highest hopes for expansion. OHB CEO Berry Smutny told…
German manufacturer OHB System has secured a great achievement with its award of the first Galileo construction contract, but it is in the field of geo-stationary satellites where it has highest hopes for expansion. OHB CEO Berry Smutny told SatelliteFinance: “Our current growth is more determined by geo activities,”
In 2009, OHB agreed to manufacture a small to mid-range geo satellite for HispaSat, which will be based on OHB’s new platform Luxor, which is being developed in conjunction with ESA’s ARTES 11 program.
OHB is also working with the German Aerospace Center on a feasibility study on the Heinrich Hertz project, a national communications satellite that would explore and test new space technology.
Smutny said: “The fact that we have attracted a commercial satellite operator like Hispasat is good, but it is a big responsibility to deliver the spacecraft on time, by the end of 2012.”
“We have the possibility of being involved in three geo satellite projects that would enable us to be in the commercial market from 2012/2013 onwards. Our commitment is to have an 18 month delivery platform for geo satellites. This is one of our key differentiators compared to the competition in the US.”
At present, OHB will not compete for business in India and China. This still leaves a sizeable market through which it can generate substantial revenue growth.
Smutny said: “Our aim is to gain a share of the market in smaller geo satellites that is worth E250-270m per year. The major competition there is from Orbital Sciences Corporation in the US. For us, a market share of one satellite per year would be acceptable. That will realistically happen more from 2014 onwards.”
The market for small to medium sized satellites could be set to expand in the coming years, as more and more operators look to increase their orbital capacity in smaller increments for lower prices.
“I think there are good reasons why there is a need for this kind of spacecraft,” said Smutny. “Along with financial considerations, there is the need for companies to utilise available orbital slots before their rights to those slots expire.”
“The key to the growth of this market is to utilise cheaper, medium lift rockets. That is why we are very interested in the prospects for the SpaceX Falcon 9 rocket.”
Along with navigation, communications and earth observations satellites, space-based radar systems will remain an integral part of OHB’s business, with the operation and eventual replacement of German military reconnaissance system SAR-LUPE an essential priority. OHB completed the first SAR-LUPE constellation in 2008.
“SAR-LUPE is a ten year platform, so the next generation will be a part of our business plans in the future,” said Smutny.
“Radar technology is somewhere we can compete globally in terms of price and performance. If you compare E320m for five SAR-LUPE satellites, that is a factor four to five times lower than US prices, so we’re optimistic of future success in this area.”
