Suppose you often check the market trends and follow up the things organizations and companies are doing. You must have noticed the trends running for years with many companies, especially tech companies kicking off a space division. This fact is not a surprise to many people who recognize the potential of the space sector. Firms are creating space divisions to venture into the industry and explore all that space offers. And Sierra Nevada Corporation is one of these companies. However, it recently announced its decision to spin off its space division to become a separate company.
This bold move demonstrates its ability to foresee the potential of space exploration and the historic growth expected in years to come. On April 14th, the company sent a message to employees from the SNC’s President and chairwoman, Eren Ozmen. The company’s space division will split from the rest of its activities to become a self-contained company, Sierra Space. However, it will still be a subsidiary of the leading company.
Eren explained why it was essential to settle for this decision since Sierra Space will have the power to explore space better and capture the sector’s expected historical growth. The Space division’s current yearly revenue is up to $400 million, and Eren projected that there would be a tremendous increase in the next five to ten years, generating up to $4 billion. She explained that the development teams and technologies in the space division are ready to grab the opportunities available and realize the current space market’s potential.
The president also gave few directions on how this inevitable transition will unfold. However, she stated that change takes time, and it may take a few months to complete it. Also, Sierra Space will continue working with other sectors in SNC, such as defense and aviation.
The SNC space division kicked off in 2008 after SNC acquired a startup satellite developer, MicroSat Systems. Its specialization was in developing propulsion systems and spacecraft components. Later SNC acquired another space firm, Orbital Technologies, in 2014 with expertise in support systems and propulsion, where it worked alongside NASA and SpaceDev, another acquisition, for its commercial crew project. This spacecraft is expected to liftoff by the end of 2022. The company is still interested in developing spacecraft and continues to work with NASA to achieve this goal.
Recently on March 31st, SNC leaders commented on the space division and its intention to work with NASA to become a part of the Commercial LEO Destinations Program. However, John Roth, an official from SNC, explained that NASA’s move for limited funding in the program is disappointing and called upon the space agency to make changes. Experts believe this move is bold and exciting, but only time can tell its results.