More than 150 highly skilled jobs are at risk in Moray after space rocket manufacturer Orbex confirmed it is set to enter administration, in a move described by its chief executive as “disappointing doesn’t come close”. The Forres-based orbital launch firm, which has been developing low‑carbon small and medium‑sized rockets for launches from SaxaVord Spaceport in Shetland, will continue trading while options including a sale of all or part of the business are explored.
Orbex said the decision follows unsuccessful fundraising efforts and collapsed merger and takeover talks, underscoring the capital‑intensive nature of rocket development and the long road to commercial launch. The company had been working towards its first test flights later this year, supported by a £20m UK Government funding package awarded in 2023 to help develop Prime, a 19‑metre rocket designed to carry small satellites into orbit.
Chief executive Phil Chambers said the team had been building “a sustainable, world‑class sovereign space launch capability for the UK” and had been “on the cusp of our first test flights later this year.” He added: “It is no secret that designing and building space rockets to enable a launch service is a capital‑intensive, highly advanced process with a long development cycle that creates a ‘scale‑up’ funding gap. Institutional support is crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.”
With more than 150 staff employed at its Moray base, Orbex has been positioned as a major player in the UK space sector and a driver of high‑value jobs in the Highlands. Highlands and Islands Enterprise (HIE), which has awarded the company £3.7m since 2020, described the situation as “a major blow to Orbex, its employees and their families” and said it will work with administrators and partners through PACE to support those facing redundancy.
A HIE spokesperson said the firm “has been a major player in the UK space sector” and that, from its Moray base with a “highly‑skilled workforce of more than 150 people, it has made significant progress in developing the industry in the Highlands”. They stressed that the region’s natural geographical advantages for satellite launch, combined with the “enhanced expertise, in no small part developed by Orbex”, mean it still has “a huge amount to offer potential investors in the space sector”.
The looming administration has triggered a political row over whether the UK Government has done enough to back domestic launch capability. Moray West, Nairn and Strathspey MP Graham Leadbitter said the “responsibility for the company’s downfall lies with the UK Government” after funding was withdrawn that he claims would have secured Orbex’s future.
“My immediate concerns are with the 160 employees at Orbex whose jobs are at risk, and it’s vital that all public organisations step in to support the workers through what will be a difficult time,” he said, adding that he would work with “governments of all spheres” to maintain employment and keep high‑skilled jobs in the community. “But all of this was avoidable – the UK government has long talked up the need to develop sovereign launch capabilities, but has yet to match their rhetoric with action. In fact, in this case, they’ve directly contradicted their own words by sabotaging the future of Orbex.”
Moray MSP Richard Lochhead called the news “a huge blow for the highly skilled workforce and the local economy” and warned that deep‑tech launch companies “require public support” to reach the stage of playing a key role in programmes such as those led by the European Space Agency. “The UK Government – which holds the key purse strings – must invest in and support companies like Orbex if it wants to achieve satellite sovereignty,” he said, confirming he is seeking meetings with administrators, HIE and Scottish Government ministers “to see if a way forward can be found.”
SaxaVord Spaceport, the Shetland launch site where Orbex had planned early operations, moved to reassure other customers and the local community that its wider programme remains on track. Chief executive Scott Hammond said that although the announcement was “a sad day for Orbex, and for its staff who will now be looking for new jobs”, the impact on SaxaVord itself would be “very little”.
“While we had agreed heads of terms with the company, Orbex had never reached a position to start on site at SaxaVord and let us develop infrastructure for them to launch from,” he said. “Our business model has always been multi‑client because, at the outset, we recognised that, in what is a very competitive rocket launch market, not all players would succeed. For us, fortunately, it is business as usual as we work with our other clients on testing, test flights and launches in the months and years ahead.”
Deputy First Minister Kate Forbes described the development as “deeply disappointing” and warned that the loss of highly skilled jobs in Moray “will be felt acutely across the local community, the wider economy and Scotland’s growing space sector”. She said she had been engaging with UK ministers “in the hope that a solution could be found with UK Government funding” and called for clarity on “how the UK will protect the Scottish launch sector”.
“Scotland has established itself as a leading space nation in Europe, with a strong cluster of advanced manufacturing, launch capability and satellite innovation,” Ms Forbes said, stressing that the Scottish Government “remain fully committed to supporting Scotland’s space sector and ensuring the talent, expertise and infrastructure built here continue to thrive”. Her comments reflect concerns that the collapse of one of Scotland’s flagship launch ventures could chill investment unless a clear pathway for future backing is set out.
The UK Government insisted it “remains committed to supporting our dynamic space sector”, highlighting that the country attracts some of the highest levels of private space investment in Europe and is home to “over 1,900 innovative space companies such as Open Cosmos, Magdrive, Filtronic, and Space Forge”. A spokesperson said these firms “support tens of thousands of high‑skilled jobs across the country” and argued that it has “always been the case that some companies will succeed, while others will fail” in a highly competitive launch market.
“We recognise this will be a very worrying time for staff at Orbex,” the spokesperson added, saying further details on plans for “developing key national space capabilities, including launch” will be set out in due course, with any decisions focused on “ensuring maximum impact for taxpayers’ money”. For the Orbex workforce in Moray, however, the immediate priority is job security as politicians, agencies and ministers search for a rescue deal that can keep their skills – and Scotland’s launch ambitions – firmly grounded at home rather than drifting into orbit.
