Sky and Space Global has announced its second China deal in three weeks
Special report: Sky and Space Global has announced its second China deal in three weeks as the nano-satellite maker moves closer to providing data services in the world’s most populous country.
Sky and Space (ASX:SAS) has signed an initial deal to work with a rocket company that exclusively operates China’s space program and carries out space technology testing with satellite operators.
Under the deal, a subsidiary of China Great Wall Industry Corp will explore providing satellite launch services to SAS.
Sky and Space Global shares jumped 17 per cent last month after it first announced a move into China, incorporating its Internet of Things and communication services into Chinese satellite communications provider Commsat’s network.
Until then, Sky and Space had been mainly focused on the equatorial region, launching a constellation of 200 nano-satellites to provide affordable voice, messaging and Internet of Things applications in that area.
Sky and Space has always planned to work with a number of different satellite launch providers as it works towards activating the “Pearls” satellite network by 2020.
The nano satellite technology is so efficient that SAS plans to launch 20 to 25 satellites per quarter between 2019 and 2020.
China’s heavy space focus
China is investing heavily in its space industry as it races to launch its first space station by 2022.
The country has 36 space missions on the agenda at the moment, China’s People’s Daily newspaper recently reported — most of which will use China Great Wall’s Long March rockets.
Under the deal anounced today, Sky and Space will assess whether China Great Wall’s capabilities meet its technical requirements before entering into formal contract negotiations for its nano-satellite program.
The two will also consider broader collaborative projects and expansion of the SAS network into greater China.
“This is the first step in securing additional launch capabilities for our constellation of nano-satellites, which was always part of our business plan,” said Sky and Space chief Meir Moalem.
“China Great Wall Industry Corporation is a well-known and reliable player in the international launch services industry, not to mention the main space cooperation company in China, and we are confident that we will have a long and fruitful relationship.
“We are also planning to continue working with CGWIC to expand our business relationships in China.”
China Great Wall Executive Vice President Fu Zhiheng said: “This MOU is the product of a steadily growing relationship with Sky and Space Global which I anticipate will be mutually beneficial.
“We believe that Sky and Space Global is a pioneer in next generation usage of nano-satellites and will be a major launcher of nano-satellites in years to come.
“We are very excited for the opportunity to support Sky and Space Global’s business plan and to assist SAS in business collaboration in the Greater China region.”
This special report is brought to you by Space and Space Global.
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