Terran Orbital, a publicly traded satellite maker based in Boca Raton, is dropping Florida’s Space Coast as the site for a proposed factory in favor of a location in Southern California.
The company’s explanation: its California location can ramp up production faster than the three years it would take to build a facility in Central Florida.
“Terran Orbital’s advanced manufacturing capabilities, which were originally planned for expansion on Florida’s Space Coast in partnership with Space Florida, have been accelerated and will now be based in Irvine, California,” the company said in a statement. “Terran Orbital has added over 140,000 square feet in Irvine alone in the past 12 months.”
In September 2021, Gov. Ron DeSantis announced the project, which at 660,000 square feet was to have been among the largest in the nation, employing 2,100 people by 2025.
“This will be the largest satellite manufacturing facility in the entire world,” DeSantis said at a news conference at the time.
But one year later, it is not to be.
The reversal is a rare event for the Space Coast, which has been attracting a number of private sector companies including Airbus One Web Satellites, Boeing, Blue Origin and Space X among others since NASA dismantled its shuttle program a number of years ago.
In a statement Tuesday to the South Florida Sun Sentinel, Anna Alexopoulos Farrar, vice president of corporate communications for Space Florida, said no state funds were allocated or committed to the Terran Orbital project.
The company also announced the defense giant Lockheed Martin, an existing shareholder, invested $100 million in Terran Orbital, raising its stake from 9.4% to 33.%. Lockheed bought both stock and debt, a financial lift that will help the Boca Raton company move toward profitability.
Terran Orbital said the investment comes with a cooperation agreement with Lockheed “to pursue a wider variety of opportunities” in the satellite business.
The investment represents a deeper commitment to Terran Orbital, which has been doing business with the defense contractor since 2017.
“We see the opportunity to dramatically ramp up our capabilities and external product offerings, which we believe will move Terran Orbital toward profitability,” said Marc Bell, the company’s co-founder, chairman and chief executive officer.
Farrar of Space Florida said the agency wanted to congratulate Terran Orbital on its Lockheed Martin investment, “which will enable them to grow their existing operations.
“Space Florida will continue to work with Terran Orbital, and we look forward to partnering with them on their future plans when they are ready,” she said.
The Boca Raton firm has had a $700 million contract with Lockheed to produce 42 satellites for the U.S. Space Development Agency, Space News reported.
Terran Orbital also alluded to the Russian invasion of Ukraine which “has highlighted the need for advanced satellite imagery.”
It said it intends to address the demand by getting its technology “into the hands of those protecting and defending our nation and allies.”
