Production of 100 satellites per year. New factory in Europe

Europe is intensifying its efforts to develop its own manufacturing capabilities in the space sector. A key element of this initiative is the new investment in Italy, where satellite production is set to begin later this year. The facility, covering 21,000 m², will be one of the largest satellite production centers of its kind on the continent.

Strategic Significance

This ambitious project is part of a broader strategy jointly pursued by France and Italy, aimed at accelerating the growth of the European space industry. It represents a response to increasing competition in the space sector and an effort to enhance technological capabilities to match the progress achieved by China and the United States.

The new facility, referred to as the “Space Smart Factory,” is designed to produce up to 100 satellites per year for both civilian and military applications. The investment, valued at around €100 million, was financed partly through European Union recovery funds allocated in the aftermath of the COVID-19 pandemic and partly through Thales Alenia Space’s own capital.

The Space Smart Factory is expected to support the implementation of key European and national programs, as well as the continent’s ambitious space initiatives. Thales Alenia Space CEO Hervé Derrey stated that the facility will enhance both the company’s production capacity and its global competitiveness.

Meanwhile, Teodoro Valente, President of the Italian Space Agency (ASI), noted that the factory will play a crucial role in producing satellites for the creation of Italy’s low Earth orbit (LEO) constellation known as IRIDE (International Report for Innovative Defense of Earth). This is one of the most important projects for Italy’s space sector.

A European Giant

Reports about the launch of the new factory come as negotiations continue over the potential creation of a consortium bringing together Leonardo, Thales, and Airbus. The goal would be to establish a European powerhouse capable of competing more effectively with rivals from China and the United States—particularly with Elon Musk’s SpaceX.

The first reports on this topic emerged in December 2024. In recent days, the same source indicated that the parties are considering a framework agreement which—though complex—could be finalized within the coming weeks. The negotiations currently focus on the division of responsibilities and management structure. “Discussions with our partners are ongoing and remain confidential. It is too early to provide further comments,” said an Airbus spokesperson.

In this context, the Space Smart Factory could become one of the key components of the consortium’s production structure. “The satellite manufacturing market is a growth area we cannot afford to miss. We want to be part of it now, and our goal is to become global players,” emphasized Roberto Cingolani, CEO of Leonardo.