Kenko Aerospace Participates in World's Largest Space Launch Vehicle Project... Wins US Boeing SLS Contract

[Asia Economy Reporter Hyunseok Yoo] Kencoa Aerospace announced on the 13th that it has secured an initial order worth $1.3 million (approximately 1.4 billion KRW) from Boeing in the United States for the SLS (Space Launch System) launch vehicle.

After receiving the contract advance payment in December last year and starting production last year, the company is preparing for the initial delivery early this year. Following this initial order, the contract amount for the same project is expected to expand to more than $5 million (approximately 5.5 billion KRW) in the future.

NASA plans to invest 32 trillion KRW (28 billion USD) over four years in the Artemis project, a manned lunar exploration initiative. Boeing Space is responsible for the SLS (Space Launch System) launch vehicle segment, Lockheed manufactures the exploration spacecraft, and Northrop Grumman produces the auxiliary propulsion rockets.

Kencoa is in charge of producing detailed parts for the launch vehicle’s Intertank and engine sections, as well as the Slosh Baffle tank control device. California Metal, a Kencoa group company that already supplies special space-grade raw materials to NASA, SpaceX, and Blue Origin, is responsible for supplying raw materials for this project, maximizing synergy among affiliates.

Thus, with the group company supplying raw materials and Kencoa USA handling production, all of Kencoa’s U.S. affiliates are participating in the space industry. According to the company, Kencoa is the only domestic company generating sales from NASA Artemis launch vehicle-related projects.

California Metal currently supplies special raw materials for the space industry to over 30 companies, including NASA and SpaceX. Sales related to the space industry began to accelerate after 2018, growing from 1% of consolidated sales in the early stages to over 10% expected in 2021. As the U.S. space industry experiences explosive growth, the supply chain is currently being established, with sales increasing in the launch vehicle supply chain.

In particular, based on this order, Kencoa has received a proposal to participate in the mass production project of launch vehicles from Blue Origin, an Amazon-affiliated space company, and is currently preparing a quotation, raising expectations for additional orders.

Lee Min-kyu, CEO of Kencoa, stated, “The space industry is expected to grow into a $1 trillion (1,100 trillion KRW) market over the next decade as the era of private spaceflight arrives, making it the most notable business sector in the U.S.” He explained, “The aerospace industry can be divided into manufacturing sectors such as launch vehicles and operational sectors like satellite internet and navigation systems. Kencoa has entered the manufacturing sector of the U.S. market, which holds the largest share of the global space industry market, and is recording sales.”

He added, “We are the only domestic company that not only deals directly with NASA but also trades with established space industry leaders such as Lockheed, Boeing, Northrop, as well as private space companies like SpaceX, Blue Origin, and Virgin Galactic. Thanks to the market’s growth trend, related order amounts are rapidly increasing, and Kencoa’s swift growth within the space industry is highly anticipated.”

This content was produced with the assistance of AI translation services.