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Astrium Wins Ariane 5 Contracts (Sept. 1)



BREMEN/BERLIN---The European space concern Astrium (a joint venture set up by EADS and BAE Systems) has been awarded a contract by Arianespace for the supply of 15 EPS upper stages for the Ariane 5 launcher system. The skeleton contract, which is worth 100 million EUROs (approx. 200 million Deutschmarks), specifies the supply of 10 EPSs, and provides for options on a further five.

"Astrium has so far this year received orders worth 250 EUROs (just under 500 million DM) in connection with Ariane 5," explained Josef Kind, Member of the Board and President of Astrium's Space Infrastructure Division on Friday at the signing of the contract in Berlin. In May, Arianespace contracted Astrium to supply 20 Vehicle Equipment Bays (VEBs) worth 150 million EUROs. And before the end of the year, Astrium expects to receive an order to supply several Vulcain thrust-chamber systems.

Jean-Marie Luton, Chairman and Chief Executive Officer of Arianespace had the following to say about the award of the latest orders: "This contract with Astrium once again illustrates the extremely dynamic approach taken by both Arianespace and the European space industry. I would like to thank the teams at Astrium who continue to work without letup to help consolidate Arianespace's leadership - a leadership based on the highly competitive Ariane 5 launcher. Ariane 5 offers not only attractive launch costs, but an operational performance that will be continuously upgraded. This contract fully reflects Arianespace's confidence in the Ariane 5 launcher."

Rainer Hertrich, Co-CEO of the European Aeronautic Defence and Space Company (EADS) underlined the importance of the contract: "This order is another evidence of the great success and competitiveness of the Ariane programme. Once again, this is proof of the excellent prospects of EADS, which has combined its space activities in Astrium".

Josef Kind pointed out that Astrium had gone to considerable lengths to achieve the reduction in the cost of Ariane 5 components stipulated by Arianespace: "Everyone involved in the Ariane programme is well aware that the competition to provide services in connection with the launching of space vehicles is soon going to intensify. Other competitive systems are coming onto the market, and we have to be ready to meet this challenge".

Astrium and its partners have managed to reduce production costs by more than one third in comparison with the first order they received for the series production of Ariane components. These savings were achieved not only through extensive technological and organizational modifications, but also through the experience gained during the earlier series production of Ariane 5 components.

The high safety and quality standards the launcher system has to satisfy, however, will remain unaltered. "Arianespace is working together with an efficient team of industrial contractors," commented Josef Kind. "We know that we can depend on each other."

Besides its importance for Astrium, Kind also pointed out the considerable economic benefits this latest contract would bring to the countries participating in the Ariane programme. "In Europe, Ariane guarantees employment for around 20,000 highly qualified workers," he explained. "Any subsidies that the participating countries have invested in the development of launchers have been repaid many times over in the tax revenues received by the state from the industrial concerns which have obtained orders. And the large numbers of small and medium-sized companies which have made themselves indispensable as subcontractors have also benefited."

According to Josef Kind, the further development of Ariane 5 technology now ranks alongside series production as a centrally important industrial activity for the companies participating in the programme. "In the very near future," he predicted, "our customers will be aiming to send larger and heavier payloads than ever before into orbit. The experience we have gained over the decades represents a decisive competitive advantage which we must quickly turn to advantage."

One of the targets defined in the "Ariane 5 plus" development programme is increasing the flexibility of the services Ariane spacecraft can provide through the creation of reignitable upper stages capable of releasing several payloads into different orbital positions.

Astrium is a joint venture between the European Aeronautic Defence and Space Company (EADS) and BAE Systems. EADS holds 75% of Astrium's shares, BAE Systems 25%.

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Astrium Lands Ariane 5 ContractsWorth 250 million EUROs