European satellite manufacturers Thales Alenia Space and ISS Reshetnev are to form a Russia-based joint venture sixteen months after they signed an initial MoU to develop the project.
The new company is called Universum Space Technologies and will be…
European satellite manufacturers Thales Alenia Space and ISS Reshetnev are to form a Russia-based joint venture sixteen months after they signed an initial MoU to develop the project.
The new company is called Universum Space Technologies and will be based in Krasnoyarsk, the Siberian city where Reshetnev is headquartered.
Reshetnev will hold a majority 60% stake in Universum, which is intended to be self-sustainable from a financial P&L point of view. The new company will also have the ability to utilise both the Russian and French export credit agencies.
A Thales spokesperson told SatelliteFinance that the application for the creation of the JV was submitted to the Russian authorities in March 2013 and that the company is expected to begin operations as a legally registered entity at the end of 2013 / beginning of 2014.
At first, Universum will focus on completing semi-finished telecommunications satellite equipment supplied by Thales to be sold to the Russian government. The plan is for the joint venture to then work on the development of new products for satellites for the commercial Russian market and then finally the international market.
As the potential to build entire satellites, the spokesperson said: “Pending agreement by shareholders, it could subsequently extend its scope of business to include the delivery of complete commercial telecommunications satellites for the Russian market, based on products and expertise contributed by Thales and ISS, in line with international quality standards.”
Commenting on the JV, Jean Loïc Galle, President and CEO of Thales Alenia Space said: “Today’s (28 February) initiative culminates some 20 years of joint success with our partner ISS and over 20 jointly built satellites.
“The partnership with ISS is absolutely a strategic one for Thales Alenia Space. The joint venture we have created today will enable us to assemble, integrate and test telecom satellite equipment that meets the most exacting standards, thus driving a significant increase in our business volume.”
Nikolay Testoedov, general designer and general director of ISS Reshetnev, added: “Our collaboration with Thales Alenia Space is an example of mutually advantageous attitudes. Creating the Joint Venture enabling to manufacture some components of payload domestically, we expect to get an access to new niche in the market of Russia and abroad.”
The two companies have worked together since 1993 and began jointly developing satellites in 2004. Under this deal, Reshetnev typically constructs the satellite platform and then subcontracts the payload to Thales.
Legal and financial advice on the formation of Universum was done in-house by both companies.