Kenkoa Aero-M&J Participate in Largest Ever Space Internet Satellite Launch Project

Published 12 Apr.2022 09:05(KST)

[Asia Economy Reporter Hyungsoo Park] Kenko Aerospace announced on the 12th that it will participate in Amazon’s largest-ever space internet satellite launch project, Project Kuiper.

On the 5th, Amazon signed a contract with ULA (United Launch Alliance) for up to 38 satellite launches for the space internet project, Project Kuiper. According to Amazon, the total contract value for rocket launch services, which also involves France’s Arianespace and Blue Origin, amounts to approximately $10 billion (KRW 12 trillion). This is the largest scale in the history of the commercial space industry.

ULA is a space launch service specialist established in 2005 through the merger of Boeing and Lockheed’s launch vehicle divisions. It carries out most major U.S. national projects and government space projects, including those for NASA. It once monopolized the U.S. national launch service market and still holds a dominant market share. ULA has provided highly reliable launch services, having completed 143 launch projects without a single failure.

While holding nine existing launch contracts with Amazon, ULA signed this contract through its next-generation launch vehicle, Vulcan Centaur. M&J is a key supplier for both of ULA’s launch vehicles. Kenko completed a partial equity investment in M&J last month. Through phased equity investments, the M&A will be finalized in 2023, and M&J will be incorporated as a consolidated subsidiary.

Lee Min-kyu, CEO of Kenko Aerospace, said, "Project Kuiper is Amazon’s space internet business prepared since 2019," and added, "The M&J acquisition was initiated with Project Kuiper in mind."

He continued, "M&J will grow significantly through this contract," and emphasized, "We believe it will also create great synergy effects in existing launch vehicle supply chain businesses, including NASA’s Artemis project."

He added, "Through M&A aligned with market trends and synergy with existing space businesses, Kenko is growing as a major supplier in the U.S. launch vehicle market."