Kencoa Aerospace Corporation, which is a South Korean aircraft assembler as well as parts supplier with clients such as SpaceX, NASA, and Blue Origin, is preparing to expand its Georgia-based parts manufacturing facility. According to a Kencoa investor relations officer, the firm earned 30 billion won ($26.6 million) in the month of February by selling convertible bonds to domestic institutional investors. A third of the freshly raised funds will be used to expand its Eastman, Georgia-based subsidiary, Kencoa Aerospace LLC.
California Metal & Supply Inc., headquartered in Los Angeles, produces special materials as well as alloys for space rockets, engines, and other items. Kencoa gained a foothold in the United States via a pair of acquisitions in 2017. “With the introduction of New Space, we are seeing an increase in demand for our products,” the manager stated. “Through the year 2025, we anticipate our space business to expand at a 50 percent annual rate.”
Although the firm’s 2020 revenues dropped nearly 32% year over the year to 31.64 billion won owing to the pandemic causing havoc on the aircraft assembly as well as maintenance business, sales of the firm’s space business grew “robustly,” according to the manager, who declined to provide specifics due to the sensitive nature of the results. Kencoa’s stock price on the South Korea’s small-cap-based KOSDAQ market increased 226 percent from January to end at 17,300 won on March 3 as a result of a set of lucrative deals with United States space companies.
In late February, Kencoa made headlines when it announced its first rocket engine supply contract with Blue Origin. As per the boss, Kencoa Aerospace LLC will manufacture parts for Blue Origin’s BE-4 rocket engines under the deal. “We prepared for two years to make it occur,” he stated, noting that California Metal & Supply Inc. was added to Blue Origin’s supplier pool in the year 2018.
Kencoa also participates in NASA’s Artemis Program. In January, Kencoa signed a $1.3 million supply agreement with NASA provider Boeing, under which the firm’s United States affiliates will collaborate to manufacture intertank, engine part, as well as slosh baffles for Space Launch System (SLS) heavy-lift rocket, which will deploy an uncrewed Orion capsule on Artemis 1 flight. According to the boss, the firm’s pieces will also be utilized in SLS’s Artemis 2 and Artemis 3 missions.