Scottish rocket firm Orbex set to appoint administrators

Scottish rocket manufacturer Orbex has said it intends to appoint administrators after failing to secure sufficient funding.

In a statement, Orbex, which employs about 160 people, said it would continue to operate as normal while exploring options but has been unsuccessful in finding funds, a merger or a buyer.

It said the decision to appoint administrators would provide short-term protection for its creditors, employees and wider stakeholders.

Highlands and Islands Enterprise (HIE), which has provided millions of pounds of funding to the Moray-based company, said the situation would have a large impact on Orbex's employees and their families.

The company is headquartered at Forres in the Moray coast, where all but nine of the workforce are based.

It has been planning the first launch of its relatively small and low-cost rocket, Prime, later this year at SaxaVord Spaceport in Shetland, with the prospect of becoming a commercial launch vehicle for satellites.

Orbex's announcement comes after the company revealed it had been in talks to sell the business to international aerospace firm The Exploration Company (TEC).

But despite backing from private investors, European venture capital, and the UK government, Orbex said it failed to secure crucial Series D funding.

It said merger and takeover talks have also collapsed, leaving the company facing financial uncertainty.

Chief executive Phil Chambers said the company was "on the cusp" of its first test flights this year and had worked "tirelessly" to find funding or rescue solutions.

"Disappointing doesn't come close to describing how we feel about this moment," he said.

"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."

Highlands and Islands Enterprise said in a statement: "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.

"We'll also be working with the administrators to help secure the best possible outcome for employees and for the region's economy."

The statement added: "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 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."

A spokesperson for Shetland's SaxaVord Spaceport said Orbex's administration will have "very little impact" on them.

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."

She said she has been working closely with the UK government in the hope of finding a solution but clarity is needed to be able to 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," Forbes added.

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

A UK government spokesperson said: "We recognise this will be a very worrying time for staff at Orbex.

"Space launch is a highly competitive sector, and it has always been the case that some companies will succeed, while others will fail.

"We will be setting out more details about our plans for developing key national space capabilities, including launch, in due course. Any decisions will be focused on ensuring maximum impact for taxpayers' money."