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.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
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.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
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