China to Set Up First Rocket Company for Commercial Launches

China plans to establish a company that will develop rockets and provide launches for commercial clients, a scientist working for a state-owned space technology enterprise said on Tuesday, March 15.

A report by the Xinhua News Agency quoted Hu Shengyun, chief model designer of China Sanjiang Space Group (CSSG), as saying that a commercial launch is scheduled to be conducted in 2017 by the company's latest carrier rocket, Kuaizhou-11.

Hu, also a national legislator, told Xinhua on the sidelines of the annual legislature session that it has been the plan of the company to set up a dedicated company as part of the commercialization of the Kuaizhou series carrier rockets, adding that the project has gained the interest of certain Internet giants.

Kuaizhou-1 and Kuaizhou-2 solid-fuelled carrier rockets were launched in 2013 and 2014, respectively, by CSSG, which is located in Hubei Province, in central China. In Chinese, Kuaizhou means "speedy vessel."

According to the report, there is a huge market for commercial use of rockets in space industry such as in the United States, where more than half of the satellites in orbit are commercial satellites. But China needs to take a significant space for itself in the market, the report added.

"Commercialization can help us make our mark in the market, as it will reduce the cost in satellite development and launch services," Hu said.

In an article published on the Chinese Academy of Sciences (CAS) website, Hu was quoted as saying that the establishment of the new company would break the monopoly by China Great Wall Industry Corp., the only authorized provider of commercial launch service in the country.

The development of Kuaizhou solid-fuel rockets was started by China Aerospace Science and Industry Corp. in 2009, with the aim to develop a low-cost, quick-response rocket family for the commercial launch market.

At least 53 Long March rockets carrying 61 satellites into space for 24 foreign clients have been launched by China, according to the article.

"There are at least 50 domestic institutes and companies involved in the development of small and miniaturized satellites, but they have to wait a long time to have them launched," the scientist said. "This is because state-funded satellites always have priority in launch scheduling. Moreover, many small developers can't afford the high expenditure."

The article said that many space companies around the world which are looking for reliable, low-cost launch vehicles to send their small satellites could present a huge business opportunity for Kuaizhou rockets.

The Kuaizhou-11, which is scheduled to be launched in 2017, has a larger diameter and stronger capacity, compared with Kuaizhou-1 and Kuaizhou-2. It can place a 1-metric-ton payload into a sun-synchronous orbit at an altitude of 700 kilometers, the article said.

Hu added that prelaunch preparations for the Kuaizhou-11 will take very little time and the launch can be conducted on rough terrain.

"We estimate that by 2020, the market value of commercial space activities in China will reach 30 billion yuan ($4.6 billion) each year," the rocket designer said. "We plan to produce up to 30 Kuaizhou solid-fuel rockets annually if our business goes well."