- The UK government has entered a partnership deal with the US for commercial spaceflight collaboration.
- The deal would reduce UK's reliance on other countries to launch its satellites.
Rockets, spaceplanes, and high-altitude balloons will lift off from spaceports across the UK very soon, thanks to the new partnership that the country has signed with the US. The deal for commercial spaceflight collaboration, signed between Transport Secretary Grant Shapps and his US counterpart Pete Buttigieg on 11 May, is a clear signal to the world that the UK is eyeing to be a European hub of space activity, the government said in a statement. It will help in launching cost-effective, quicker, and more streamlined space operations and make future spaceflight cheaper and easier.
The development comes even as preparations are underway for UK's first-ever launch from home soil later this year from Spaceport Cornwall. A total of seven spaceports are being developed across the country.
Partnership to boost UK Space industry
The UK-US deal on commercial space operations will not only make it easier for UK companies to get direct access to the space environment and reduce the reliance on other countries, it will also result in the creation of thousands of high-skilled jobs. The sector is already injecting billions into the economy, and it is expected to grow further. As per the government data, the UK space-related organisations created £16.5 billion in income in 2020, supporting about 47,000 jobs.
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Let us take a look at three stocks related to the space industry that investors can keep an eye on.
BAE Systems Plc (LON: BA.)
BAE Systems is a UK-based aerospace and security company and Europe's largest defence contractor. For FY2022, it expects to achieve a growth of 2-4% in sales over the previous year and a free cash flow in excess of £1 billion.
Shares of the company were trading at GBX 732.00, 0.08% up at 8:40 am GMT+1 on 13 May, with a market capitalisation of £23,083.13 million. The shares have provided good returns of 44.17% to the investors over the past one year, and the year-to-date return currently stands at over 33%.
Rolls-Royce Holdings Plc (LON: RR.)
Rolls-Royce is an aerospace and defence firm headquartered in London, UK. The company designs and manufactures systems for aviation and other industries. On 9 May, Rolls-Royce and BAE systems won contracts from the UK government worth over £2 billion for its nuclear deterrent renewal programme.
Shares of Rolls Royce Holdings Plc were trading at GBX 82.36, up 1.21%, at 8:51 am GMT+1 on 13 May 2022. The FTSE 100 constituent has a market capitalisation of £6,809.55 million at present, and its share price has plunged by 21.40% over the past one year.
Boeing Co (LON: BOE)
The US company doesn't just make aircraft but also designs and manufactures rockets, satellites, and telecom equipment. Its spacecraft Starliner, which is designed for US Space agency NASA, is set to be launched on the Orbital Flight Test-2 (OFT-2), an uncrewed mission to the International Space Station, on 19 May.
Boeing currently has a market capitalisation of £61,144.97 million, and its share value has depreciated by more than 43% in the past one year. Boeing's last close was US$126.37 on 12 May 2022.
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