Schaeffler, Spire Global team up for space hardware, satellite platforms in Europe
Strategic Partnership Announcement
May 27 (Reuters) - Schaeffler and U.S.-based satellite operator Spire Global have signed a memorandum of understanding to jointly develop space hardware and satellite platforms for European defence, weather and security applications.
Market Impact
Shares of the German machine and auto parts maker jumped 15% after the deal was announced on Wednesday afternoon, set for their best-ever trading day if the gains hold.
Partnership Goals and Vision
The companies intend to build a sovereign European space hardware and mission business before the end of this decade, they said in the joint statement.
Revenue Targets
"Our ambition is to achieve a revenue of around €250 million from the partnership by 2030," Schaeffler CEO Klaus Rosenfeld told Reuters, adding that the company was also open for cooperation with other companies in the industry.
Strategic Objectives
The partnership is aimed at accelerating Schaeffler's entry into the space sector while strengthening Spire's presence in Germany, they said.
Company Backgrounds
Spire Global's Capabilities
Spire, which uses its satellites to provide data, analytics and software products, has the capacity to produce between 300 and 400 satellites per year across facilities in the U.S. and Europe.
Schaeffler's Growth Strategy
Schaeffler meanwhile named space and defence among key growth drivers in its 2035 strategy.
Positioning in the Space Sector
"As a motion technology company, Schaeffler is ideally positioned to enter the new space sector," Rosenfeld said in the statement.
Reporting Credits
(Reporting by Christina Amann, writing by Amir Orusov, editing by Milla Nissi-Prussak)
