Astrium ST is the European space infrastructure and space transportation specialist. It designs, develops and produces Ariane 5 launchers, the Columbus laboratory and the ATV cargo carrier for the International Space Station (ISS), ballistic missiles for France’s deterrence forces, propulsion systems and space equipment.

Orbital Infrastructure

The orbital infrastructure segment in which Astrium ST operates comprises manned and unmanned space systems. Work on the ISS, together with related vehicle and equipment development programmes and services, constitutes the predominant field of activity in this segment. Astrium ST is the prime contractor under an ESA contract relating to two key elements of the ISS: the Columbus Orbital Facility laboratory (COF) and the Automated Transfer Vehicle (ATV).

Market

Demand for orbital infrastructure systems originates solely from publicly funded space agencies, in particular ESA, NASA, Roscosmos (Russia) and NASDA (Japan). These systems are generally constructed in cooperation with international partners. In addition to the COF and ATV projects, ESA is responsible for developing other components relating to the ISS’ construction and operational phases, for which Astrium ST has already been awarded contracts. National space agencies, such as DLR and CNES, are also involved in the development of laboratory facilities to be used on the ISS, representing additional contract opportunities for Astrium ST.

Products

Astrium ST is the prime contractor for the development and integration of the COF. The COF is a pressurised module with an independent life-support system. It will provide a full-scale research environment under microgravity conditions (material science, medicine, human physiology, biology, earth observation, fluid physics and astronomy) and will serve as a test-bed for new technologies. The COF is expected to be transferred to the ISS by shuttle at the end of 2007.

Astrium ST is also the prime contractor for the development and construction of the ATV, which will carry fuel and supplies to the ISS, as well as provide reboost capability and a waste disposal solution. The ATV will be the first European vehicle to carry out a rendezvous in space and dock automatically with an orbital station. The first ATV (Jules Verne) is scheduled to be launched by the Ariane 5 rocket in mid-2007, with additional ATV missions planned through 2013.

In addition to its work on the COF and the ATV, Astrium ST, through Dutch Space, is the prime contractor for development of the European Robotic Arm of the ISS, which will be used by astronauts for the assembly and maintenance of exterior station elements.

Finally, Astrium ST supplies laboratory facilities to be used in various station modules for research under microgravity conditions (MSL laboratory, MCS system, RFR refrigerator, CFR rack, MSG glove box, PCDF and Cardiolab laboratories). It also supplies CNES with a Declic experiment facility for experiments in the field of fluid physics.

Launchers & Launch Services

Space systems (including satellites, orbital infrastructure elements and interplanetary probes) depend on rocket propelled multi-stage launchers, which are consumed during the launch process, to place them into orbit. Astrium ST is active in two distinct businesses: (1) designing and manufacturing launchers for both civil and military purposes; and (2) providing launch services through its interests in Arianespace, Starsem and Eurockot.

Astrium ST is the sole prime contractor for the Ariane 5 system, with responsibility for the delivery to Arianespace of a complete and fully tested vehicle. Astrium ST also supplies all Ariane 5 stages, the equipment bay, the flight software, as well as numerous sub-assemblies. Additionally, Astrium ST is the prime contractor for ballistic missile systems to the French State. It is responsible for the development, manufacturing and maintenance of the M45 and M51 submarine-launched missiles and related operating systems.

Market

Management estimates that the average open commercial market for launch services will likely remain at 20/25 payloads per year, relating primarily to the launch of geostationary telecommunications satellites. However, due to various factors (e.g., technology advances and consolidation of customers), this figure is highly volatile. This market does not include institutional launch services for the U.S., Russian and Chinese military and governmental agencies.

In 2006, the market for launch services changed significantly. Russian companies and state agencies significantly increased the price of their launchers, thereby making western launchers more competitive in the market. This has changed the economics of various Russian/Western joint ventures in particular (e.g., International Launch Services, Sea-Launch, Starsem and Eurockot), as the competitive advantage they enjoyed from being able to obtain low-cost rockets from the former Soviet Union has eroded.

In the area of national defence, Astrium ST has been the exclusive supplier of ballistic missiles to the French State since the early 1960s. In addition to conducting development and production activities, Astrium ST performs substantial maintenance work on the ballistic missile arsenal to ensure system readiness over the life span of the equipment, which may be several decades. In 2006, Astrium ST built on this experience by winning a contract with NATO for the first time as part of an international partnership.

Products and Services

Launch Services. Astrium ST is active in the field of launch services through its shareholdings in Arianespace (for heavy-lift launchers), Starsem (for medium-lift launchers) and Eurockot (for small-lift launchers).

Arianespace. Astrium ST is Arianespace’s second largest shareholder (after CNES) with a 31% stake (direct and indirect), and its largest industrial shareholder. Arianespace is the world’s largest commercial launch service provider in terms of total order book. At the end of 2006, Ariane had launched a total of 242 satellites. Arianespace markets and sells the Ariane launcher worldwide and carries out launches from the Kourou space centre in French Guyana.

In 2006, Arianespace won nine new commercial contracts, representing 45% of the accessible market. It also won two governmental launch contracts in 2006. Five Ariane 5 launches were carried out in 2006, placing into orbit ten satellites (eight commercial and two institutional).

Two versions of Ariane 5 are currently in service: (1) Ariane 5 GS, which is able to launch one or more payloads with a total mass of up to 6.9 tons into geostationary transfer orbit, and (2) Ariane 5 ECA, which is the workhorse of Arianespace with an increased launch capacity of 10 tons in geostationary transfer orbit. Since 1999, when the first Ariane 5 commercial launch occurred, twenty-five Ariane 5 rockets have been successfully launched.

Europe’s commitment to support Ariane as the European launcher has been demonstrated by the signing of an agreement between ESA and Arianespace in March 2004 entitled “European Guaranteed Access to Space” (EGAS), and by the issuance of a “buy European” recommendation for institutional satellites made by the Space Ministerial Conference held in Berlin in December 2005.

Starsem. Astrium ST directly owns 35% of Starsem, a French corporation, along with Arianespace (15%), the Russian space agency (25%) and the Russian state-owned Central Specialised Design Bureau “Progress” (25%). Through Arianespace, Starsem markets launch services by Soyuz launchers for medium-weight spacecrafts into low or sun-synchronous orbits as well as for interplanetary missions. Although no new contracts were signed in 2006, there were two institutional launches from Baikonur. Work is also progressing on a new launch pad at Kourou, with the first launch (to be operated by Arianespace) scheduled for the end of 2008 or early 2009.

Eurockot. Astrium ST (51%) and Khrunichev (49%) jointly control Eurockot Launch Services, which procures launch services for small, low-earth orbit satellites with Rockot launchers derived from the SS-19 ballistic missiles. In 2006, Eurockot did not sign any new contracts, although one launch occurred (Kompsat 2) on behalf of the South Korean government.

Commercial Launchers. Astrium ST manufactures launchers and performs research and development for the Ariane programmes. Member states, through ESA, fund the development cost for Ariane launchers and associated technology. Since 2004—when it was awarded a €3 billion contract to provide thirty Ariane 5 launchers—Astrium ST has been working on supplying such launchers to Arianespace. As the industrial prime contractor, Astrium ST has worked to streamline and simplify the Ariane organisation and thereby improve its competitiveness. While efforts in 2005 focused on the qualification of the 10-ton version of Ariane and the organisation of Ariane production under a single prime contract, the year 2006 was devoted to supplying a standardised launcher while increasing cost savings.

Ballistic Missiles. Astrium ST is the only company in Europe which designs, manufactures, tests and maintains ballistic missiles. Under its contracts with the French State, Astrium ST has produced the submarine launched MSBS family (M1, M2, M20, M4 and M45) and launch facilities at the Brest naval base. The M45 is deployed onboard France’s new-generation nuclear-powered ballistic missile submarine. Astrium ST manages the operational maintenance of the M45 missile system, assisting the French armed forces until the end of its operational service. Astrium ST is under contract to develop the M51, a new submarine-based strategic missile system with increased technical and operational capabilities. The first test flight of this new missile was conducted successfully in November 2006. At the end of 2004, the French MoD awarded Astrium ST a contract for the M51 production phase and test range facilities with a frame-contract in excess of €3 billion. At the end of 2006 a contract for an enhanced upper-stage was awarded by the French MoD for an amount of more than €200 million, helping to secure Astrium ST’s technical capabilities in this field for the long-term.

Management believes that the development and production of the M51 will provide Astrium ST with high quality work over the long term. In addition, the relative predictability of demand provides some stability to the otherwise volatile launcher market.