The Herzogenaurach-based automotive and industrial supplier Schaeffler is entering the aerospace sector, having signed a Memorandum of Understanding to collaborate with satellite manufacturer Spire. The primary focus of the partnership is the establishment of supply chains for satellite systems, Schaeffler announced on Wednesday. The two companies intend to build an independent European aerospace business unit by the end of the decade, catering to missions in defense, meteorology, civil security, and critical infrastructure.

As part of the agreement, Schaeffler will supply components including reaction wheels, which are essential for controlling satellite positioning. Schaeffler CEO Klaus Rosenfeld described the deal as a win-win situation for both parties. While the initial phase will involve small production volumes, Rosenfeld stated: 'Our ambition is to reach approximately 250 million euros in revenue from this partnership by 2030.'

Currently, Schaeffler generates the majority of its revenue from its automotive business. However, Rosenfeld is pivoting toward new growth areas, such as aerospace, defense, and humanoid robotics for industrial applications. These segments are projected to account for ten percent of total group revenue by 2035, according to Rosenfeld. The collaboration with Spire represents a significant step toward this goal, and Schaeffler remains open to further partnerships within the aerospace industry.

(Reporting by Christina Amann, edited by Myria Mildenberger. For inquiries, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for corporate and markets)