Virgin Galactic will open new factory in Phoenix

A company operating in the space tourism industry has given an update on the establishment of a new Delata-class ship factory in Mesa, Arizona:

• The company signed that it has signed a long-term agreement for a new manufacturing facility in the Phoenix region. The plant is under construction and is expected to be fully operational by the end of 2023 and will serve the company to assemble next-generation Delta-class spacecraft. The previous week, Virgin Galactic announced that it had entered into a contract for an undisclosed sum to build next-generation ships with Boeing;
• The production facility will use a new technology called 'digital twins', which will allow faster production scaling, integration with suppliers and production reliability;
• Ultimately, the plant will be able to produce up to six spacecraft a year and will create new jobs for the company, which will employ aerospace engineers and parts manufacturers. Delta's ships will be designed for daily flights. Ultimately, Virgin Galactic intends to conduct up to 400 flights a year. The ships will take off from the Spaceport America base;
• The current schedule indicates that the first revenue-generating flights with cargo on board will take place in the second part of 2025. Then, in 2026, the company will move to providing services to private customers and forecasts an associated huge jump in margins;
• Virgin Galactic is currently in the process of looking for suppliers of the components needed to build the spacecraft that will be assembled at the Mesa. Companies like Heico or TransDigm could potentially be selected for this.

"Our spacecraft final assembly plant is key to accelerating production of our Delta fleet, enabling rapid growth in flight capability that will drive our revenue growth (...) We are excited about expanding into the greater Phoenix area, which is home to outstanding aerospace talent - and we look forward to growing our team and fleet in our new facility." - commented on the decision to build the factory, Virgin Galactic CEO Michael Colglazier.

• Virgin Galactic has experienced a massive sell-off since its recent peak in July 2021, illustrating investors' negative attitude toward risk. However, the company, despite falling valuations, is taking steps that bring it closer to its ultimate success of offering suborbital space tourism services.

Virgin Galactic (SPCE.US) stock chart, D1 interval. The company has continued its downward trend since the beginning of the year, but since near the beginning of May the price has been moving in a narrow price corridor between $5.5 and $7.5 per share. On the chart, we are potentially observing an upward triangle formation and rising price bottoms, which may herald a release of demand as sentiment in the broad market improves. Source: xStation5