EADS’ Dutch Space takeover to stem job losses

DATE:02/12/05
SOURCE:Flight International

EADS’ Dutch Space takeover to stem job losses
Flight International Online news 10:00GMT: EADS Space hopes its acquisition last week of the Netherlands’ satellite technology company Dutch Space will maximise its revenue from the European Space Agency’s (ESA) geographic return principle and help it lobby for greater space funding as it faces 700 job losses.
The European space giant now operates in five European Union countries and Dutch Space adds 300 people to its workforce and has annual revenues of up to EU65 million ($76 million).
ESA organises its spending to ensure that a country’s space industry receives contracts commensurate with its government’s contribution to the ESA budget.
Owning more companies in more ESA member states means potentially more revenue for EADS Space.
On 5-6 December ESA’s ministerial meeting will agree a new budget for 2006-2010.
However its EADS Space’s view that the proposed budget does not provide enough funding, especially for launcher development.
“We are going to have to reduce our staff again, 700 jobs will disappear over the next three years,” says EADS Space, “We hope our argument for more funding will be heard.”
The job losses will hit the company’s EADS Space Transportation subsidiary’s French sites, with Les Mureaux near Paris expecting to be hit hardest.
At the EADS Space, Dutch Space contract signing on 1 December the Dutch minister for economic affairs, Laurens Jans Brinkhorst, expressed support for greater planetary exploration.
ROB COPPINGER / LONDON

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