Cloud services company Mangata Networks has chosen Scotland as the location for its research and development activities, as well as space systems and core network operations.
Over the coming few years, up to 575 new jobs should be created as part of its new engineering and operations hub for satellite manufacturing at the Prestwick International Aerospace Park in Ayrshire.
The hub is supported by a funding and assistance package from public sector partners, totalling more than £83.7m from Scottish Enterprise, Scottish Government, UK Government and South Ayrshire Council.
This comprises £54.5m from Scottish Enterprise and £29.2m from the Ayrshire Growth Deal provided on commercial terms - i.e. not grant funding - that will see it repaid over the next 15 years.
The new facility will produce and test more than 24 medium-class satellites every three months, becoming a significant focal point for the Scottish and UK space sectors.
Once built, it should be capable of qualifying, integrating and testing satellites up to 1,500kg in size. Mangata will also establish an operations centre to manage its satellite systems and global network.
The majority of the new jobs will be technical engineering positions in product development, designing and manufacturing satellites, and operating the system end-to-end.
Construction will begin in early 2023, with manufacturing and operations teams set to move in from late 2024.
Brian Holz, chief executive of Mangata Networks, commented: “Scotland, Ayrshire, the local regions, and the UK have expressed a lot of confidence in our system and mission.
“We will be using this facility to bring our satellite connectivity and intelligent edge compute solutions to enterprises globally.
“Today, our customer base has already committed to over 1.5 Tbps pre-launch, nearing full capacity of our initial 32 satellites, but as the business grows, Mangata’s network can scale to over 750 satellites.
“This factory will be a key enabler, allowing us to scale and deliver cost-effective space technology into markets that really need it.”
Deputy First Minister John Swinney said: “The fact that Mangata has chosen to base its new satellite manufacturing facility in Ayrshire is a huge boost for the region, for the space and manufacturing sectors, and for Scotland as a whole.
“As well as the substantial, high-skilled job opportunities, this will open up new pathways for the satellite manufacturing supply chain and help position Scotland as a leading centre for space and manufacturing innovation – while supporting the aims of our space strategy.”
Scottish Enterprise’s funding comprises £51.4m for building design and construction for the Prestwick facility, £840,000 in land value and £2.3m equity investment in Mangata.
Additionally, Scottish Enterprise announced in March 2021 that it had awarded a £3.6m research and development grant as a contribution towards Mangata’s £10.5m project.
Mangata was founded in February 2020 and initially financed by MetaVC Partners, with other investors including Playground Global, Temasek, ktsat, Promus Ventures and Scottish Enterprise.
The Phoenix-based group has operations in Prestwick, London, Denver, Seattle, Singapore and Seoul.
Adrian Gillespie, chief executive of Scottish Enterprise, said: “This investment has the potential to be a real game-changer in helping unlock economic opportunities from the global commercial space sector.
“Mangata’s decision to locate this project in Ayrshire is a strong endorsement of our ability to support and nurture global industries of the future.
“Not only will it bring hundreds of new quality jobs for the people of Scotland, but it will be a catalyst for a new supply chain, opening up opportunities and partnerships both domestically and internationally.”
Larry Schwartz, chief operating officer at Mangata Networks, stated: “Our Prestwick facility will include a satellite operations centre to operate our satellites following their launch.
“The facility will feature a centre to operate our end-to-end global communications network, as well as an R&D centre to develop our intelligent microEdge data centres.
“We are looking forward to working with local universities and companies, creating partnerships and integrating technology into our network and product solutions.”
This technology will be deployed within Scotland, where the created network can be tested with customers and used to incubate Scottish start-ups. These businesses will get exposure to Mangata’s investors and will have the opportunity to showcase their own technologies and applications through Mangata’s network.
Prestwick is already home to Scotland’s largest aerospace cluster, and, through the £80m investment from the Ayrshire Growth Deal, is now focussed on taking advantage of the burgeoning global commercial space market.
UK Government Minister for Scotland Malcolm Offord said: "The creation of this space manufacturing hub will deliver jobs and investment to Ayrshire and put Scotland at the forefront of an innovative industry.
"The UK Government is investing £10m towards these cutting-edge facilities as part of our £32m support for Ayrshire's space and aerospace programme."
Martin Dowey, leader of South Ayrshire Council, commented: “We are delighted Mangata has chosen to locate in Prestwick and have great pleasure in welcoming them to South Ayrshire.
“The council has now secured approval for a significant investment programme to deliver commercial workspace at Prestwick.
“We are already anticipating the first satellite launches from Prestwick Spaceport from spring 2024 and, through our highly ambitious space programme, are set to become Europe’s premier space hub.”
Scotland has a space industry estimated to generate £880m gross value added for the Scottish economy in 2017/18, with a sustained annual growth rate of 12%.
The number of space businesses in Scotland has increased by more than 65% since 2016, and the sector proportionately employs more than twice as many people in Scotland as the rest of the UK.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
