logo
  Join        Login             Stock Quote

Japan scraps GX rocket development project

Wednesday, December 16, 2009 3:23 AM


TOKYO, Dec. 16, 2009 (Kyodo News International) -- Japan canceled the development of the GX rocket for the launch of commercial satellites after determining it would consume funds for other projects and its business prospects are not promising, the government said Wednesday.

The joint government-private sector project was expected to require a further 94 billion yen in the state budget until the completion of the two-stage rocket and a government panel on cutting wasteful spending had recommended that it should be scrapped.

The cost of launching the rocket was estimated at 8 billion yen, a level judged unlikely to attract business from Russian and American ventures.

The government said it will continue part of the project for the development of a liquefied natural gas-powered (OOTC:LNGLF) engine, which was to be used in the rocket for launching small and midsize commercial satellites.

The project has suffered delays and unexpected cost increases that have prevented the venture from entering the space launch business.

The project began in 2003 with the state-run Japan Aerospace Exploration Agency, known as JAXA, major heavy machinery maker IHI (OOTC:IHITF) Corp. and U.S. defense contractor Lockheed Martin Corp. (NYSE:LMT) taking part.

As Japan currently leads the race for developing an LNG engine, the Education, Culture, Sports, Science and Technology Ministry has decided to submit a 5.8 billion yen budget request for that part of the project for fiscal 2010 starting April.

But the working group of the Government Revitalization Unit that suggested the rocket project should be scrapped also called for the development of the engine to be shelved.

(Source: iStockAnalyst )

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.