The investors behind Space One, the Japanese commercial rocket company that had a launch failure yesterday
The explosion yesterday of the new Japanese-built Kairos-1 solid-fueded rocket shortly after lift-off immediately raised questions whether the new rocket company that built it, Space One, could survive that failure.
This story from CNBC suggests it will, based mainly on the nature of its principal investors.
Space One was set up in 2018 by a consortium of Japanese companies including Canon Electronics, IHI Aerospace and construction firm Shimizu, along with the government-owned Development Bank of Japan. Mitsubishi UFJ and Mizuho Financial Group, two of Japan’s biggest banks, also own minority stakes in Space One.
The story is focused on the declines in the stock values of these companies, following the failure, with Canon’s stock falling the most, 12.7%.
My takeaways from the article however are different. First, these are not small investors. Space One is backed by some of Japan’s biggest corporations as well as indirectly by the Japanese government. One failure should not cause them to back out of the project.
Second, that the company was formed in 2018 by these Japanese heavy-hitters and only now was able to finally attempt a launch — that ended in failure — suggests Japan’s heavy-hitters continue to do things slowly and poorly. Not only have these big companies been working much too slow to build this relatively small rocket, Mitsubishi’s effort to build the much larger H3 rocket for Japan’s space agency JAXA has also been fraught with delays and problems, from engine cracks to launch failures. It appears Japan’s space industry is building things with the same lackadaisical attitude of America’s modern airline industry.
Third, that this “startup” was created by a team of old space large companies suggests Japan still doesn’t get the basics of capitalism. This new company isn’t creating any real competition. It was instead apparently formed to keep these heavy hitters in control of the Japanese launch market. This partnership reminds me of the many projects put together for decades by American consortiums of old space companies, such as Boeing teaming with Lockheed Martin to create ULA. All such partnerships were designed not to create new companies and new innovative products that would compete, but to maintain the control these old companies had on the industry.
Space One will likely fly again, but until we begin to see completely new companies from Japan, backed by independent new investors, this country is going to continue to lag behind everyone else.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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The explosion yesterday of the new Japanese-built Kairos-1 solid-fueded rocket shortly after lift-off immediately raised questions whether the new rocket company that built it, Space One, could survive that failure.
This story from CNBC suggests it will, based mainly on the nature of its principal investors.
Space One was set up in 2018 by a consortium of Japanese companies including Canon Electronics, IHI Aerospace and construction firm Shimizu, along with the government-owned Development Bank of Japan. Mitsubishi UFJ and Mizuho Financial Group, two of Japan’s biggest banks, also own minority stakes in Space One.
The story is focused on the declines in the stock values of these companies, following the failure, with Canon’s stock falling the most, 12.7%.
My takeaways from the article however are different. First, these are not small investors. Space One is backed by some of Japan’s biggest corporations as well as indirectly by the Japanese government. One failure should not cause them to back out of the project.
Second, that the company was formed in 2018 by these Japanese heavy-hitters and only now was able to finally attempt a launch — that ended in failure — suggests Japan’s heavy-hitters continue to do things slowly and poorly. Not only have these big companies been working much too slow to build this relatively small rocket, Mitsubishi’s effort to build the much larger H3 rocket for Japan’s space agency JAXA has also been fraught with delays and problems, from engine cracks to launch failures. It appears Japan’s space industry is building things with the same lackadaisical attitude of America’s modern airline industry.
Third, that this “startup” was created by a team of old space large companies suggests Japan still doesn’t get the basics of capitalism. This new company isn’t creating any real competition. It was instead apparently formed to keep these heavy hitters in control of the Japanese launch market. This partnership reminds me of the many projects put together for decades by American consortiums of old space companies, such as Boeing teaming with Lockheed Martin to create ULA. All such partnerships were designed not to create new companies and new innovative products that would compete, but to maintain the control these old companies had on the industry.
Space One will likely fly again, but until we begin to see completely new companies from Japan, backed by independent new investors, this country is going to continue to lag behind everyone else.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Typo: should be “principal” investors.
Michael McNeil: Yup, that’s what it should be. Fixed. Thanks.
I don’t know about the Japanese not getting capitalism—they have been better at cars than rockets.
China is the opposite—they build good rockets but their cars are crap.
Go figure