In 2014, the first Lithuanian satellite, Lituanica SAR-1, was launched into orbit. It became the inspiration for founding NanoAvionics, the first and so far the only space technology company in Lithuania. Now, it is among the leading satellite producers in the world, intending to be top in the universe, says Vytenis Buzas, head of the company.
NanoAvionics has recently been acquired by the Norwegian company Kongsberg Defence & Aerospace, which specialises in defence, maritime and space industries.
– You sold a majority stake in NanoAvionics to Kongsberg, a Norwegian technology company. Why was this decision taken?
– In general, the market is currently undergoing consolidation, with smaller companies merging with larger ones. This is a common feature of the market’s development, as the market itself is quite young. We may not be a big company globally, but we are already quite significant in our industry. It was time for us to look for a “big brother”. There were several options, and the Norwegian company is very supportive and fits in with what we do. They produce the equipment, both hardware and software, and we also produce it. This means that our activities move in the same direction.
– Does this change the nature and scope of your activities?
– It changes the scope in a positive way – more growth, more serious projects. This is very good news for the company. We don’t foresee any changes in our activities, except for introducing additional ones. Everything is geared towards growth.
– We last spoke in 2020. What has changed in your company since then?
– At the beginning of 2020, we were a bit worried about how things would go because of the Covid-19 pandemic. However, it hasn’t hurt the growth. I’d say it has even helped it. Since then, the company has doubled in size, and the pace (of growth) is tremendous.
– The number of your employees has also increased. How is the talent search in Lithuania going?
– I probably won’t surprise anyone but it’s not very easy because the scale is big, and we’re constantly looking for a dozen new employees. We have a team in our company that attracts and recruits people, so it’s very busy.
– What skills are needed to work with space technologies?
– A wide range of skills. Engineering can be grouped into software, electronics and mechanics. Mechanics is further broken down into design, simulations, thermal simulations, orbital dynamics, and so on. Electronics is also concerned with computers, sensors, navigation systems, etc. Software in general is a very broad subject, and we are constantly improving it. We also have people working in sales, marketing, etc., and the administration is growing. The company is growing horizontally.
– You also have employees in the UK and the US. What do they do there?
– In the UK, our colleagues are mostly involved in engineering, and in the US – in sales. It depends very much on the market, the specifics of the country, etc.
– Are you also expanding abroad?
– Yes, I’d say we’re expanding everywhere, but faster in some places and slower in others. Of course, the greatest expansion is in Lithuania.
– Do you have competitors in Lithuania?
– The business is global. There are only partners here, we don’t have any competitors in Lithuania.
– What is the position of NanoAvionics in the global market?
– I can say with confidence that we’re in the top five. In Europe, we’re competing for second or third place. In the world, there is still a lot of competition – the largest competitors are in the US.
– Do you have the ambition to be number one in the world?
– No doubt. Not even first in the world, but in the universe.
– And which satellites are most needed now?
– The satellites are increasing in size, and we saw this trend very early on. We started with smaller satellites of up to three kilograms, and now, our satellites weigh 50-250 kilograms. We are moving from nanosatellites to microsatellites. Obviously, we’re still operating in both market segments. But in general, our satellites are growing in size, as they are all over the world because launch prices have fallen dramatically over the years.
– What is the difference between smaller and larger satellites?
– Their objectives are similar – they’re mainly used for Earth observation and communication. However, a larger satellite can carry more instruments, take in more solar energy, and generate more electricity.
– How long do satellites stay in orbit?
– It depends on which orbit they are launched into. If it is at a lower altitude of, say, 400 kilometres, they stay there for half a year. And if it is at an altitude of 500 kilometres or more, the satellites can remain there for up to 30 years or more.
– You mentioned that your production volumes have increased. How many satellites do you produce per year?
– We now produce around 20-30 satellites every year. When we started, we produced two satellites in two years.
– What do you think are Lithuania’s prospects in the market of space technology?
– It needs to be treated as a regular industry, such as lasers, biotechnology, food, etc. It’s an industry, not some exclusive thing that is better or worse than others. We produce and we export – 99% of our production is exported. I would not single out space technology as a special phenomenon. It’s just an industry.
– What challenges do you face in Lithuania? Is there enough state support?
– Not only in space, but in all other areas, everyone would like for someone to save them. This is unrealistic. The state helps as much as it can, and there are various forms of funding. We need to be looking at a different scale and ways of funding.
In the past, we received some helpful grants from the Agency for Science, Innovation and Technology (MITA), the Lithuanian Business Support Agency (LVPA), and the Lithuanian Research Council (LMT). These have really helped us to create and develop our product.
As the company was growing, we started working more with the European Space Agency and the European Commission, because there are slightly different levels of calls and orders, both financially and in terms of challenges.
The support and the interest are certainly there, but how much we take from it and whether we’re able to transform it into a product that will continue to generate income is up to us. (LRT/Business World Magazine)