Airbus Group and Safran Group on Thursday said they have finalized the creation of their joint venture for the space launchers business, meaning it is now full-fledged operational company.
The two companies initiated operations of their 50-50 joint venture on Jan. 1, 2015 after approval by the European Space Agency in December 2014. Safran is making an $831 million payment to Airbus to obtain its 50 percent stake in Airbus Safran Launchers.
Europe’s Airbus and France’s Safran said that with the final creation of Airbus Safran Launchers, “the company officially incorporates the parent companies’ assets and subsidiaries related to its core business.”
Airbus Safran Launchers provides the existing Ariane 5 launchers and is working on a new family of launchers for Europe. The joint venture combines’ Airbus’ expertise in launch vehicles with Safran’s propulsion systems.
Tom Enders, CEO of Airbus Group, said in a statement that “With the closing of this agreement, Airbus Safran Launchers becomes fully operational and will focus all its efforts on delivering more competitive solutions to its customers. Top of the list is the next generation Ariane 6 launcher, which is due to have its maiden flight as early as 2020.”
Philippe Petitcolin, CEO of Safran, said in a statement that the joint venture “sets us firmly on the path to a more integrated, more efficient and more competitive European launcher industry.”
The joint venture was created to rationalize the space launch business in Europe and make it more competitive.
Airbus Safran Launchers has about 8,400 employees in France and Germany.