Japan’s NEC Corp. has revealed plans to invest 10 billion yen (approx. $114.5 million) to build a new factory in Tokyo that will produce space satellites at a low-cost for emerging nations. Sources say the technology company is looking to begin manufacturing in fiscal 2014, which begins in April of that year.
The plan is for the factory, to be built in the suburb of Fuchu as part of a joint effort with the central government, to help Japan win contracts from other countries that are looking to build and launch their own satellites. While the 10 billion yen figure is seen as relatively competitive on the global scale for building a commercial satellite factory, NEC has already been successful in lowering the costs of producing small satellites and related equipment to prices between 6 billion yen and 8 billion yen (from $68.7 million to $91.6 million).
Japanese engineering company IHI Corp. has developed a 3 billion yen ($34.4 million) rocket that can carry a small satellite into space, and when combined with NEC’s product, provides Japan with competitive pricing. While North Korea claims its long-range missile launch last month was successful in putting a scientific satellite into orbit, the international community still has doubt about what really made it into space and if it actually functions.