Paris: In a major move to strengthen Europe’s position in satellite communications, Airbus, Thales, and Leonardo have agreed to merge their satellite manufacturing operations. The new venture, named Project Bromo, is designed to compete with Elon Musk’s Starlink and other American and Chinese rivals.

The joint venture is expected to launch in 2027 after receiving regulatory approval. It will employ around 25,000 people across Europe and is projected to generate annual revenues of 6.5 billion euros based on 2024 figures. Airbus will hold a 35 percent stake while Thales and Leonardo will each own 32.5 percent. The companies expect to achieve significant increases in operating income within five years.

The merger consolidates Europe’s satellite manufacturing capabilities, which have faced increasing competition from low cost satellite networks in low Earth orbit. Although previous rounds of job cuts have occurred, the companies have not announced further layoffs and will consult unions as part of the integration process.

Project Bromo follows the cooperative model of MBDA, a European missile manufacturer, and reflects Europe’s determination to strengthen its position in the global space industry.