Prestwick satellite plant ditched due to 'economic pressures'
The hub would have brought nearly 600 jobs to the area
The firm behind a satellite manufacturing plant marked for Prestwick says ‘challenging economic conditions’ contributed to their decision to end the project.
In a major blow to the local economy, Mangata Networks they were pulling out of the deal they made in December 2022 with the UK and Scottish Governments, South Ayrshire Council and Scottish Enterprise, which would have brought nearly 600 jobs to the area.
Instead, the telecommunication company – who were only formed in February 2020 – insists they will turn their focus on maintaining their current research and development sites already in Scotland.
A spokesperson for Mangata Networks said, “Due to challenging global economic conditions, significant increases in material costs and issues with supply chain availability, Mangata Networks, in consultation with Scottish Enterprise, has made the decision to end the new build project for its facility in Scotland.
“Our focus will now shift towards identifying and adapting existing structures within the region to meet Mangata's manufacturing needs.
“Despite this change, Mangata remains committed to maintaining its product Research and Development operations in Scotland. We are also actively considering Scotland as a potential base for our satellite and network operations.”
The announcement comes as a devastating hit to the four public sector partners who invested tens of millions of pounds in the venture, and the promise of at least 575 jobs in the area.
A spokesperson for Scottish Enterprise said, “It is disappointing that Mangata Networks has decided to withdraw from its planned manufacturing and operations project in Scotland.
“It’s testament to Scotland’s status as the most attractive location for inward investment in the UK outside of London, and our thriving space sector with a skilled workforce and growing expertise, that we initially attracted Mangata to Scotland against stiff global competition.
“The Prestwick International Aerospace Park site remains an attractive and strategically placed location. We will continue to seek out ambitious companies looking to scale by promoting Scotland’s excellent capabilities in Space and growing reputation for innovation.”
The Scottish Government explained it was aware of the decision to end the new build initiative and cited “global economic and inflationary pressures.”
The hub was set to be supported by a funding and assistance package of more than £83.7 million and formed a major part of the Ayrshire Growth Deal.
A South Ayrshire spokesperson added: “It’s disappointing for the Ayrshire Growth Deal that Mangata has withdrawn from its plans to build a new manufacturing facility in Prestwick.
“South Ayrshire Council is fully committed to the Space and Aerospace programme within the wider Ayrshire Growth Deal, and significant work is being carried out to define the scope and requirements of the projects to meet current and future needs of the aerospace sector.”