Boeing is looking to jettison the space business. Why it might hold on to its El Segundo satellite operation

With its manufacturing practices under scrutiny, its machinists on strike and losses piling up, Boeing is said to be considering selling parts of its fabled space business. New Boeing Chief Executive Kelly Ortberg said during a recent earnings call that the aerospace giant was considering shedding assets outside of the company’s core commercial aviation and defense businesses, adding that Boeing was better off “doing less and doing it better than doing more and not doing it well.” That could mean that Boeing sees no future for its troubled Starliner spacecraft, which was developed to service the International Space Station. But any asset sale is not expected to encompass Boeing’s satellite manufacturing operations in El Segundo, which include a 1-million-square-foot plant with several thousand workers it acquired in 2000 with its purchase of Hughes Electronics Corp.’s space and communications business. A Boeing spokesperson said the company “doesn’t comment on market rumors or speculation.” The El Segundo satellite plant makes large satellites for commercial, government and military customers, including the O3b mPOWER communications satellite for SES, a Luxembourg telecommunications company. In 2018, Boeing acquired a maker of small satellites called Millennium Space Systems, which also is based in El Segundo and whose operations have been partially integrated with the company’s existing plant.