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Bob Wood, US defense industry expert at PA Consulting Group, discusses Northrop’s acquisition of Orbital ATK and what the deal will mean for Northrop’s space launch and satellite manufacturing capabilities as well as its ballistic missile expertise.
Bob says: “Space is constantly being discussed by the U.S. Air Force. I think there’s an incredible opportunity from a business perspective for Northrop to increase its presence in space and space operations.”
He adds: “Northrop might also be in a better position to win the lucrative land-based nuclear ballistic missile system contract if it is able to vertically integrate Orbital ATK’s rocket engine technology and manufacturing operations into a less expensive or more sophisticated ballistic missile system.”
He concludes: “Orbital was a potential supplier to Northrop on the rocket launch side. Now that Northrop has acquired them I think they could be in a much better place to accelerate innovation and enhance their ability to strategically capture the (ballistic missile project).”
