Tag: Aerojet Rocketdyne

ULA head rejects his engineer’s remarks about Aerojet Rocketdyne

9:47 pm

The heat of competition: The head of ULA has disavowed his engineers’ remarks that plugged Blue Origin’s engine for the Atlas 5 while dissing Aeroject Rocketdyne’s.

The engineer was giving a talk at the University of Colorado this week where he made it pretty clear that ULA favors Blue Origin over Aerojet Rocketdyne, but had to make believe they were treating both companies equally in the competition to replace the Atlas 5’s Russian engines in order to keep the Air Force happy. Bruno is probably now doing some damage control, as the government still wants to justify the Aerojet Rocketdyne contract (whose only real purpose was as a government pork barrel jobs program). Considering all the money the Air Force and congressmen give to ULA, he has to keep them both happy. And telling the world that their Aerojet contract is a waste of government money is not a very good way to do this.

Nonetheless, he also admitted that Blue Origin is way ahead in development, and is thus most likely to win the competition anyway.

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Free government money for Aerojet Rocketdyne!

8:16 am

Crony capitalism: Even though ULA prefers Blue Origin’s engine for its Atlas 5, the Air Force continues to fund Aerojet Rocketdyne’s new engine.

The U.S. Air Force announced Feb. 29 it was investing $115 million this year, and with options, as much as $536 million over the next five years, in [Aerojet Rocketdyne’s] AR1, a new liquid oxygen- and kerosene-fueled main-stage engine. The contract award is part of an Air Force initiative to end reliance on the Russian-built RD-180 engine that powers ULA’s Atlas 5 workhorse rocket.

Aerojet says it has two potential other customers to use the engine, but will not name them. In reviewing the field, the only customer I can think of that might be interested would be Orbital ATK (for its Antares rocket), and even there I have doubts. Thus, it appears to me that these funds are really being distributed to prop up a company that is failing, not to build anything useful the government needs.

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NASA contracts Aeroject Rocketdyne to build shuttle engines for SLS

5:27 pm

The competition heats up? NASA has awarded Aerojet Rocketdyne a $1.4 billion contract to restart production on the space shuttle engines, with the intent to use those engines for its hoped-for missions beyond Earth orbit using the Space Launch System (SLS).

Normally I am thrilled when an American company gets a contract to build rocket engines, but here I have my doubts. This contract will only produce deep space engines if Congress gives NASA the money to fly SLS on deep space missions. Right now, Congress has only given NASA just enough money to fly one, maybe two SLS missions, with the second not coming until 2024 at the earliest. My impression of this contract award thus is that it is not to produce engines, but to keep Aerojet Rocketdyne from going bust, since no one else has been interested recently in buying their engines. In other words, it is pork, government money handed out in order to keep the people who work for Aerojet employed.

This is not the way to become a space-faring society. Better Aerojet Rocketdyne goes bust and the good engineers that work for it find jobs with companies making products that people want. Then, the government money can be spent wisely on things that we will eventually want and use, instead of make-work projects that accomplish nothing.

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Antares failure wipes out Aerojet’s 2nd quarter profits

9:07 am

The settlement between Orbital ATK and Aerojet Rocketdyne over the failure of an Aerojet Russian engine that failed during an Antares launch has wiped out Aerojet’s entire second quarter profit.

The Rancho Cordova rocket engine maker reported a $38.1 million quarterly loss Tuesday, largely the result of a spectacular launchpad explosion last October that forced Aerojet to pay a hefty settlement to a key customer and prompted the end of a profitable supply contract. Aerojet, which has embarked on a cost-cutting program, said the third-quarter loss came to 62 cents a share. It compared to a year-ago loss of $9.9 million, or 18 cents a share.

The company’s stock has also been declining, probably linked to its loss of business to Blue Origin.

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Development of Blue Origin’s BE-4 rocket engine moves forward

10:33 pm

The competition heats up: Blue Origin has completed more than 100 development tests of its new BE-4 rocket engine, being developed for ULA.

Much of this announcement sounds like public relations blather. However, it contained this nugget of information that is crucial to understanding why this engine is likely to get built quickly:

The BE-4 engine is also the leading candidate to be used in the first stage of ULA’s Vulcan vehicle. Speaking to reporters after the Sept. 15 Florida event, Blue Origin founder Jeff Bezos said that while he was aware of competing engines for the Vulcan, like the AR-1 under development by Aerojet Rocketdyne, he was focused on completing the BE-4. “We’re going to build the best 21st century engine that we can for ULA,” he said. “Ultimately they will make the decision about what they want to do.”

Bezos also noted that, unlike the AR-1 or other concepts, Blue Origin was not seeking funding from the U.S. Air Force to help pay for development of the BE-4. “The most unique feature of the BE-4 engine is that it’s fully funded,” he said. “It’s not something you see in rocket engine programs very often.” [emphasis mine]

Aerojet Rocketdyne wants the government to pay for its new AR-1 engine. To get that done, they need to lobby Congress for funds that are simply unreliable in these days of budget-cutting. Moreover, it means that Aerojet Rocketdyne is not fully committed to the engine: if the funds don’t arrive they won’t build it.

Blue Origin is going forward, fully committed, and will likely deliver, if only because they can’t get their investment back until they do.

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Aerojet is considering increasing its $2 billion offer to buy ULA

9:29 am

The competition heats up: A news report today suggests that Aeroject Rocketdyne is considering increasing its $2 billion bid to buy ULA, thus forcing that company to use its rocket engines rather than Blue Origin’s.

The article contains a lot of information that helps explain the background behind Aerojet Rocketdyne’s offer as well as ULA’s recent switch to Blue Origin. For one thing, ULA apparently dumped Aeroject because the company refused to invest any of its own money in developing a new rocket engine.

Last summer, Aerojet’s board also rejected ULA’s request that Aerojet invest $300 million to accelerate work on the AR-1 engine it is developing as an alternative to the Russian RD-180 engine that powers ULA’s Atlas V rocket, the sources said. … Aerojet’s refusal to invest more in the AR-1 engine ultimately drove ULA to opt for the BE-4 engine being developed by privately held Blue Origin, which is owned by Amazon.com founder and billionaire Jeff Bezos, the sources said.

More significant, it appears that the Rocketdyne portion of the company is owned by the Russians!

An Aerojet takeover of ULA would also require Russia to give its regulatory approval and transfer a technology license for use of the RD-180 engines, according to two of the sources. Russia refused to transfer the license to Aerojet when it bought Rocketdyne from Pratt & Whitney, a United Technologies Corp (UTX.N) unit in 2013, forcing Pratt to retain control of a small company that brokers RD-180 sales, and could be more reluctant to do so now, the sources said.

While the quote above is somewhat confusing, it certainly suggests that, with Congress banning the use of Russian-built engines in American rockets, using Aerojet Rocketdyne engines by ULA has become problematic.

In related more bad news for Aeroject Rocketdyne, the company has just agreed to pay Orbital ATK $50 million in connection with last year’s Antares launch failure. In addition, they will take back the Russian-built engines they refurshed and sold to Orbital. The agreement also ends the company’s part in Antares.

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ULA and Orbital ATK ink new rocket motor contract

10:55 pm

The competition heats up: ULA has signed a new contract with Orbital ATK to provide solid rocket motors for its Atlas 5 and Vulcan rockets.

This deal is another nail in the coffin of Aerojet Rocketdyne, as it strongly suggests that the corporate leadership at ULA is very uninterested in doing any business with that rocket engine builder. Recently they have been taking their business every where but to Aerojet.

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ULA rejects Aerojet Rocketdyne $2 billion bid to buy company

4:41 pm

The competition heats up: Boeing today said that it has rejected Aerojet Rocketdyne’s $2 billion bid to buy ULA, the Boeing/Lockheed launch partnership.

“The unsolicited proposal for ULA is not something we seriously entertained,” Boeing spokesman Todd Blecher said. Boeing said it remained committed “to ULA and its business, and to continued leadership in all aspects of space, as evidenced by the agreement announced last week with Blue Origin,” a company owned by Amazon.com founder Jeff Bezos that is designing the engine for a new rocket being designed by ULA.

Lockheed declined comment, saying it did not discuss transactions with other companies. A source familiar with the matter said Lockheed’s refusal to comment did not reveal any disagreement between Lockheed and Boeing, and both companies agreed to reject the bid.

This might not end the issue, as Aerojet Rocketdyne officials might still follow up with a more formal proposal.

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Aerojet Rocketdyne lobbies its rocket engines to Congress and ULA

8:39 am

The competition heats up: Officials at Aerojet Rocketdyne yesterday lobbied hard for Congress and ULA to finance and buy their new AR-1 engine, designed to replace the Russian engines used in the Atlas 5 rocket.

More here, including the threat by those officials that the development of the engine could slip past 2019 if Congress doesn’t give the company more money.

The first comment at the bottom of the page of the first article above I think possibly outlines some of the reasons behind Aerojet Rocketdyne’s bid to buy ULA.

The development of the Blue Origin BE-4 is underway, and a launch vehicle like the proposed Vulcan would certainly be an asset to national security and commercial space development. But, as was stated, such a LNG/LO2 vehicle would need a different infrastructure to support it. ULA’s Atlas V is the most mature and reliable [launch vehicle] we have. The problem with it is a political one, because of its using the Russian RD-180 engine. From what has been published, plugging the BE-4 into an Atlas V is a non-starter; the BE-4 is meant for the Vulcan…if ULA can obtain funding on something more than a per-quarter schedule! Aerojet-Rocketdyne’s AR-1 would be a more logical choice to replace the RD-180, BUT…ULA won’t release the Interface Control Documents (ICD’s) to Aerojet-Rocketdyne. Hence, AR’s attempt to buy ULA.

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ULA and Blue Origin sign new agreement

10:04 am

The competition heats up: ULA and Blue Origin have signed a new agreement expanding the production of Blue Origin’s BE-4 engine for ULA’s new Vulcan rocket.

This agreement and the timing of its announcement, one day after news leaked that rocket engine manufacturer Aerojet Rocketdyne is making a bid to buy ULA, suggest that there are people in ULA that want to make sure the agreements with Blue Origin are set in stone should the purchase comes true.

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Aerojet Rocketdyne makes $2 billion offer to buy ULA

11:11 pm

The competition heats up: Rocket engine-maker Aerojet Rocketdyne has reportedly made a $2 billion offer to buy the rocket company United Launch Alliance (ULA), a partnership of Boeing and Lockheed.

If this deal goes through, it will put the squeeze on Jeff Bezos’s Blue Origin, which presently has a contract to build rocket engines for ULA. Aerojet Rocketdyne had wanted that contract and had lost out. If they buy ULA, they could then kick Blue Origin out and take on the contract themselves.

I am honestly not sure what to make of this whole thing, however. It could be that Aerojet, having lost a number of contracts and faced with a significant lose in business, has decided it needs to become a rocket company to survive. It could also be that the corporate heads of ULA have decided that the company’s effort to replace its Delta and Atlas rockets with Vulcan is too risky, and they are better off taking the cash and running.

Or it could be any number of other reasons. We shall have to wait and see how this plays out.

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Aerojet Rocketdyne to cut costs and streamline operations

9:08 am

The competition heats up: In renaming itself from GenCorp to Aerojet Rocketdyne, the company also announced today a four year program to cut costs and reduce its workforce by 10%.

It appears that most of the cuts will come from upper management, which suggests the company has identified fat it needs to get rid of in order to compete effectively in the re-energized aerospace industry.

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Aerojet Rocketdyne says it can replace the Russian rocket engines used by American rockets for $20 to $25 million per engine.

7:43 pm

The competition heats up: Aerojet Rocketdyne says it can replace the Russian rocket engines used by American rockets for $20 to $25 million per engine.

Including legacy systems and various risk-reduction projects, Aerojet Rocketdyne has spent roughly $300 million working on technologies that will feed into the AR-1, Seymour said during a June 3 roundtable with Aviation Week editors. The effort to build a new, 500,000-lb. thrust liquid oxygen/kerosene propulsion system would take about four years from contract award and cost roughly $800 million to $1 billion. Such an engine is eyed for United Launch Alliance’s (ULA) Atlas V rocket as well as Orbital’s Antares and, possibly, Space Exploration Technology’s Falcon 9 v1.1.

This is roughly the same price cited for the cost of standing up U.S. co-production of the RD-180 engine, which is manufactured by NPO Energomash of Russia and sold to ULA for the Atlas V through a joint venture with Pratt & Whitney.

Unfortunately, this announcement is part of a lobbying effort to get Congress to fund the new engine rather than a commitment by Aerojet to build it themselves. Thus, I fully expect them to go over budget and for the engine to cost significantly more once in production, facts that will make it less competitive in the future.

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