Rocket Lab Buys Virgin Orbit Facility In $16M Deal, Plans Engine Development
Portfolio Pulse from Anusuya Lahiri
Rocket Lab USA, Inc (NASDAQ:RKLB) has acquired Virgin Orbit's former facility for $16.1 million during its bankruptcy auction, significantly below its actual worth. The 144,000-square-foot complex will house the production of the Rutherford engine and serve as the development and production hub for the new Archimedes engine, which will power their Neutron launch vehicle. The acquisition is valued at around $100 million, a fraction of the cost of building a new facility.
September 13, 2023 | 4:01 pm
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Rocket Lab's acquisition of Virgin Orbit's former facility at a significantly lower cost could provide a boost to its expansion plans and operational efficiency.
The acquisition of the facility at a significantly lower cost provides Rocket Lab with a cost-effective strategy to scale up its operations. This could potentially lead to increased operational efficiency and a boost to its expansion plans, which could positively impact the company's stock in the short term.
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