Associate Regional Development Minister Mark Patterson announced Southland’s Space Operations New Zealand Ltd (SpaceOps) will receive a loan of up to $2.25 million from the Regional Infrastructure Fund.
The minister turned a sod at SpaceOp’s Awarua Ground Station at Greenhills, near Invercargill yesterday to mark the announcement.
SpaceOps, formed in 2016, is owned by Great South, the economic development agency of the Southland councils.
The company is involved in supporting satellite launches and operating ground station services for spacecraft in low-earth orbit.
The loan will help finance a $4.55m project to expand the business which will include the development of a new headquarters, workshops and supporting infrastructure.
Mr Patterson said the loan would speed up essential work that would otherwise have faced a two-year delay.
It would enable SpaceOps to meet present demands and provide for future growth, he said.
"The project will create a regional space hub to support the continued growth and development of Southland’s space sector."
Great South board chairman Ian Collier said Southland had long been known for its primary industries but the project would give the region more options in the future.
"This project will create a strong foundation for a regional space hub, positioning Southland and New Zealand as key players in the global space industry," he said.
Within five years SpaceOps expected to double its highly skilled workforce, he said.
The project built on Southland’s unique geographic advantages, including closeness to the South Pole, low horizon and limited radio interference, making the region an ideal location for ground station operations.
SpaceOps board chairman John Yaldwyn said the loan would ensure SpaceOps could meet growing international demand for its services.
"It also ensures that Southland remains at the forefront of global innovation in the space sector," Mr Yaldwyn said.
Southland Mayor Rob Scott said it was "great to see the government sharing our confidence in this business that is already realising huge potential in a niche market".
The investment will be able to speed up the momentum, he said.
