Terran Orbital’s New 94,000 Square Foot Space Vehicle Assembly Facility in Irvine, CA Receives Certificate of Occupancy

Rhea-AI Summary

Terran Orbital (NYSE: LLAP) has received a certificate of occupancy for its new 94,000 square foot space vehicle assembly facility in Irvine, California. The facility, located on a five-acre site, is expected to triple the company's current capacity for space vehicle assembly, integration, and testing upon completion.

Key points:

• Existing facilities will be dedicated to manufacturing components and modules
• The new facility will feature advanced robotics to boost capacity and production speed
• Terran Orbital aims to complete cleanroom construction and begin occupancy in Q1 2025

This expansion is part of Terran Orbital's efforts to optimize production efficiency and enhance vertical integration capabilities.

Positive

• New 94,000 sq ft facility expected to triple space vehicle assembly capacity
• Advanced robotics to be implemented for increased production efficiency
• Optimization of existing facilities for component and module manufacturing
• Expansion supports vertical integration efforts

Negative

• None.

Insights

Aerospace Industry Analyst

The receipt of the certificate of occupancy for Terran Orbital's new 94,000 square foot facility in Irvine, California, marks a significant milestone in the company's expansion plans. This development is moderately positive for Terran Orbital's future growth prospects, though its immediate impact on the stock may be

Key points to consider:

• The new facility will triple Terran Orbital's space vehicle assembly, integration and testing capabilities, potentially allowing for increased production and revenue in the long term.
• The company's focus on vertical integration and efficiency improvements could lead to cost reductions and improved margins over time.
• However, investors should note that the facility won't be fully operational until Q1 2025, meaning any financial benefits are still some time away.
• The aerospace industry is highly competitive and while this expansion is promising, it doesn't guarantee new contract wins or immediate financial gains.

From an investor's perspective, this news indicates Terran Orbital's commitment to growth and operational improvement. However, it's important to monitor future announcements regarding contract wins and financial performance to gauge the actual impact of this expansion on the company's bottom line.

Manufacturing Efficiency Expert

Terran Orbital's new facility represents a significant leap in manufacturing capability, but the devil is in the details of implementation. Here's what savvy investors should keep an eye on:

• The transition of all space vehicle assembly to the new facility could lead to short-term disruptions in production as processes are moved and optimized.
• The mention of 'advanced robotics' is intriguing, but the real question is how effectively these will be integrated into existing workflows. Will there be a learning curve that temporarily impacts productivity?
• Dedicating existing facilities to component and module manufacturing is a smart move for vertical integration, potentially reducing supply chain vulnerabilities and costs.
• The three-fold increase in capacity is impressive, but investors should watch for corresponding increases in order backlog to justify this expansion.

While the potential for efficiency gains is significant, it's important to monitor Terran Orbital's financial reports over the next 18-24 months to see if these translate into improved margins and profitability. The true test will be whether the company can secure enough contracts to utilize this expanded capacity effectively.

BOCA RATON, Fla.--(BUSINESS WIRE)-- Today, Terran Orbital Corporation (NYSE: LLAP) (“Terran Orbital” or the “Company”), a global leader in satellite-based solutions primarily serving the aerospace and defense industries, announced that on July 15, 2024, it received the certificate of occupancy for its previously announced new assembly facility, located at 4 Goodyear in Irvine, California.

Terran Orbital's New Facility. (Photo Credit: Terran Orbital)

The facility spans 94,000 square feet and is situated on a five-acre site. Upon final interior completion of construction and outfitting, it will significantly increase Terran Orbital’s space vehicle assembly, integration, and testing capabilities by over three times the Company’s current capacity. All of the Company’s space vehicle assembly will be transitioned to this new facility enabling the dedication of Terran Orbital’s existing facilities to the manufacturing of components and modules. This optimization will increase the overall efficiency and capacity of Terran Orbital’s entire production system and further facilitate the Company’s vertical integration efforts.

“We are thrilled to be advancing toward the opening of our new facility. It will truly be state-of-the-art, featuring advanced robotics that will boost our capacity and accelerate our production speed, giving us the ability to facilitate existing and new contract awards,” stated Marc Bell, Co-Founder, Chairman, and Chief Executive Officer.

With the certificate of occupancy secured on the building construction, Terran Orbital will now commence the construction of cleanrooms, targeting occupancy in Q1 2025.

Explore Industry-Leading Space Vehicle Platforms
To learn more about Terran Orbital’s industry-leading space vehicle platforms and end-to-end mission support, visit: Terran Orbital Space Vehicle Platforms.

About Terran Orbital
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. Terran Orbital provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the most demanding military, civil, and commercial customers. Learn more at www.terranorbital.com.

Forward-Looking Statements
This press release contains, and the Company’s officers and representatives may from time to time make other public written and verbal announcements that contain, “forward-looking statements” for purposes of the federal securities laws. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. All statements, other than statements of present or historical facts, contained in this press release regarding the assembly facility discussed in this press release, including the statements relating to timing, capacity, capabilities, performance and other expectations regarding the facility, future plans regarding the facility, and expectations, plans and objectives of management are forward-looking statements. Forward-looking statements are typically identified by such words as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook, “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “will,” “should,” “would” and “could” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: the anticipated timing for occupancy of the Goodyear facility; our ability to transition our space vehicle assembly to the new facility and utilize our existing space for the manufacturing of components and modules; our ability to optimize the overall efficiency and capacity of our entire production system; our ability to boost capacity and accelerate production speed; and the risks disclosed in our Annual Report on Form 10-K filed with the SEC on April 1, 2024 and the prospectus supplement dated September 18, 2023 related to our Registration Statement on Form S-3, as amended (File No. 333-271093), which was declared effective by the SEC on April 18, 2023. There can be no assurance that the future developments affecting us will be those that we have anticipated, and we may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725092392/en/

Media Contact

Juliana Johnson

Public Relations

pr@terranorbital.com

949-508-6404

Source: Terran Orbital

FAQ

When did Terran Orbital (LLAP) receive the certificate of occupancy for its new Irvine facility?

Terran Orbital received the certificate of occupancy for its new Irvine facility on July 15, 2024.

What is the size of Terran Orbital's (LLAP) new assembly facility in Irvine, California?

Terran Orbital's new assembly facility in Irvine, California spans 94,000 square feet and is situated on a five-acre site.

When does Terran Orbital (LLAP) expect to begin occupancy of the new Irvine facility?

Terran Orbital is targeting occupancy of the new Irvine facility in Q1 2025, following the construction of cleanrooms.

How will the new facility impact Terran Orbital's (LLAP) production capacity?

The new facility is expected to increase Terran Orbital's space vehicle assembly, integration, and testing capabilities by over three times the company's current capacity.