FII: Hong Kong firm ASPACE signs deal to build Saudi Arabia’s aerospace sector from scratch, to invest US$200 million
- The firm will look into the ‘holistic development of making a satellite, including the launch of satellites, in Saudi Arabia’, CEO says
- Granting ASPACE the first licence in the satellite field is a ‘cornerstone’ for related investments in the country: Saudi minister
ASPACE Hong Kong Satellite Manufacturing Center, a subsidiary of Hong Kong Aerospace Technology Group (HKATG), has signed an agreement with Saudi Arabia’s ministry of investment to develop satellites and will invest an initial amount of US$200 million in the project.
The deal signed on Wednesday means the Hong Kong firm is the first company to operate in the aerospace sector in the Middle Eastern country, Sun Fengquan, ASPACE’s co-chairman and CEO, told the Post on the sidelines of the Future Investment Initiative (FII) summit in Riyadh on Thursday.
“We will explore the [possibility of] manufacturing satellites and related parts in Saudi Arabia,” Sun said. The firm will look into the “holistic development of making a satellite, including the launch of satellites, in Saudi Arabia”.
Saudi Arabia aims to build its own aerospace corporation with ASPACE playing a pioneering role, he added.
“We will have to jointly develop the company with the Saudi government for the next stage,” Sun said, adding that a number of Saudi officials have visited his company’s facilities in Tseung Kwan O in Hong Kong.
Granting ASPACE the first investment licence in the satellite field is a “cornerstone” for related investments in the country, Khalid Al-Falih, the Saudi minister of investment, was quoted as saying by Organization of Asia-Pacific News Agency.
