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During the process of China’s reform and opening-up, China Aerospace Science and Industry Corporation Limited (hereinafter referred to as CASIC) cultivates and develops an emerging industry, “commercial aerospace”. CASIC has amazed the world with a series of innovative achievements, such as the “Five Clouds and One Train” (Feiyun, Kuaiyun, Xingyun, Hongyun, Tengyun projects and high-speed flying train project) commercial aerospace projects, Kuaizhou series rockets and the outlook of commercial aerospace industry development in the future. The development concept of “information exchange, resource sharing, capacity coordination, opening up and cooperation, as well as mutual benefit and win-win result” has also been widely applauded and admired.
Emerge at the Moment: Commercial Aerospace Brings New Vitality to Aerospace Industry
The prosperity of aerospace industry shows the strength of the country and is vital to national interest and people’s life. General Secretary Xi Jinping made it clear on the first "China Aerospace Day" in 2016 that, "Exploring the vast universe, developing the aerospace industry, and building aerospace power are our unremitting pursuits of aerospace dreams.”
Guided by 62 years of experience in the aerospace industry and 19 years of practice, CASIC has made a full strike by successfully completing the support tasks in all phases of Shenzhou 1 - Shenzhou 11 manned space flight projects, and by providing relevant key technical supports for moon landing project of Chang’e probe and networking project of BeiDou satellite.
In recent years, over 2,000 space technology achievements have been applied to various sectors of the national economy in our country, having far-reaching effects on many areas of the national economy and social life.
In face of the flourishing development of commercial aerospace industry of the world, Mr. Gao Hongwei, the Secretary of Party Leadership Group and Chairman of CASIC, has once made a brilliant comment, that “Commercial aerospace industry has huge business value. At present, the development of China’s space technology has reached a critical stage of extensive commercial applications. National support policies have been introduced, and China has basically formed the favorable environment for developing the commercial aerospace industry.” Gao’s words, pointing out the necessity and feasibility of developing commercial aerospace industry in China, was widely resonated by the attendees to the first session of the China Business Aerospace Summit sponsored by the CASIC in October 2015. It also triggered the enthusiasm of investing social capital into commercial aerospace industry.
Since the 18th CPC National Congress, CASIC has adapted itself to the strategy of following the tendency and developing commercial aerospace business. Adhering to the general principles of “success and development comes first” and the industry function orientation of “mobilizing the wits of whole society in the development of overall design institute, overall design department and final assembly plant”, CASIC keeps expanding its business to carrier and commercial satellite manufacturing, satellite launching and operation service, space information network, space information application and other fields to promote the development of commercial aerospace industry in China.
In 2013 and 2014, CASIC sent two earth observing satellites of “KZ-1” and “KZ-2” into the space by using the new generation small carrier rocket and launch system which is quick, motivated, cheap and reliable. It makes the first step of successful satellite launch with solid-propellant carrier rocket in China and becomes a pioneer marching forward in the commercial aerospace industry.
On August 5, 2016, the proposal of Wuhan National Aerospace Industrial Base—the first national commercial aerospace industrial base in China—sponsored by CASIC partnered with Hubei Provincial Government and Wuhan Municipal Government, was officially approved by the National Development and Reform Commission of China. Guided by the general strategy of developing commercial aerospace industry and focusing on the new generation space launching and application, the Base is aimed at forging four leading businesses, namely the carrier rocket and launching service for space flight, satellite platform and payload, space information application service and ground equipment manufacturing for space flight.
In February 2016, ExPace Technology Corporation, the first commercial corporation in China specialized in research, development and application of rocket, was incorporated in Wuhan, bringing KZ series carrier rocket and launch system to the commercial level. In December 2017, the Corporation signed agreements with 8 social institutional investors and completed the first round of capital increase.
On the second session of China Commercial Aerospace Forum in September 2016, CASIC proposed five major commercial aerospace projects, namely Feiyun, Kuaiyun, Xingyun, Hongyun and Tengyun. Meanwhile, adhering to the concept of “information exchange, resource sharing, capacity coordination, opening up and cooperation, as well as mutual benefit and win-win result”, CASIC took the lead in the establishment of Hubei Changjiang Space Industry Investment Fund and set up the “commercial aerospace zone” on the aerospace cloud platform for the purpose of vigorously promoting the development of commercial aerospace industry.
At the beginning of 2017, CASIC’s KZ-1A solid-propellant carrier rocket successfully sent three satellites into the space through one launching. From the contact signing to the successful launching, it took CASIC only 8 months and a half to perfectly fulfill the “first order of commercial aerospace business”. In the same year, KT-1 carrier rocket successfully launched Tiankun-1 satellite that accurately entered the intended orbit, clarifying CASIC’s capacity for independent research and development of all kinds of typical space aircraft and platforms, and laying the foundation for building the “Space-based Internet” in Hongyun Project.
The 3rd China (International) Commercial Aerospace Forum came as expected in August 2017. As the sponsor of the Forum, CASIC made a statement about its new moves and new achievements, such as exploring new area of aerospace economy, strengthening international and domestic cooperation in commercial aerospace and promoting the new commercial aerospace pattern featuring with “Five Clouds and One Train”, which received great attentions form all sectors of the society.
On September 29, 2018, KZ-1A solid-propellant carrier rocket executed another commercial task at Jiuquan Satellite Launch Center and sent the Centispace-1 test satellite successfully into the intended orbit.
As stated in the report to the 19th CPC National Congress, aerospace industry plays a significant role in our unremitting pursuit to the goal of “building aerospace power”. As pointed out by Chairman Gao Hongwei, development of commercial aerospace industry is an essential part of building an aerospace power. CASIC should fully devote itself to a pivotal role in promoting the commercialization of aerospace business during the development of commercial aerospace industry in China.
Ride the Tide: “Kuaizhou” Becomes a New Business Card of Commercial Launching
In the development of commercial aerospace, the propulsion enjoys priority. The capabilities of carrier rocket determine the level and scale of space application. Therefore, to satisfy the demands of commercial aerospace application, CASIC has developed “Kuaizhou” solid-propellant carrier rockets for commercial aerospace launching.
—The speed of “Kuaizhou” is its distinguished feature and advantage.
On January 9, 2017, KZ-1A solid-propellant carrier rocket broke through the -5°C cold air of Jiuquan Satellite Launch Center and sent 3 satellites precisely into the intended orbits. It was the first and a remarkable step made by CASIC in the field of commercial launching. On September 29, 2018, KZ-1A solid-propellant carrier rocket accomplished another commercial launching task successfully.
CASIC has achieved the “Kuaizhou” speed of commercial launching within months. To do that, CASIC simplifies the launching guarantee facilities of KZ-1A solid-propellant carrier rocket to shorten the time of preparation, so as to meet the requirements of small satellites and micro-satellites launching. In addition, “three-horizontal testing and launching mode” of horizontal final assembly, horizontal testing and horizontal transportation is adopted to improve the operation convenience. The advanced final stage liquid boost guarantees the multi-orbit launching capacity and high precision orbit injection attitude, satisfying the demands for multiple satellites launching by one rocket.
Meanwhile, through unrestrained cooperation and extensive utilization of social capitals and market participants, CASIC creates an open environment and minimizes the circulation links of whole rocket service process from research and development to launch. In this case, the reliability and cost performance of carrier rockets are improved comprehensively.
—“Kuaizhou” mode shows all characteristics of commercial launching.
Different from the previous space launch mode, the launching of KZ-1A solid-propellant carrier rocket, as an all-commercial aerospace task, is organized and executed fully based on commercial launching contract and through market conducts.
As a low-cost, highly-reliable and general-purposed carrier rocket developed by CASIC, KZ-1A solid-propellant carrier rocket uses international general interface and provides launching services mainly for 200 kg-level low-orbit small satellites.
—“Kuaizhou” family keeps growing.
Kuaizhou solid-propellant carrier rocket, distinguished by its innovative characteristics of low cost, fast assembling and quick orbit injection, carries the internationally original design concept of satellite and rocket integration proposed by CASIC. In case of sudden outbreak of natural disasters, and failure of ground monitoring and communication system, satellite launch and space deployment can be performed quickly to acquire relevant information regarding the disaster, and to create favorable conditions for disaster loss reduction and relief work.
Developed from a new R&D mode, namely “quality management of space enterprises + flexible operation of private enterprises”, KZ-11 rocket has better carrying capacity than KZ-1 and meet the demands of commercialized, high-density and quick launching of satellites.
Develop with the Flow: Innovative Mode Brings New Vitality to Development
At the same time of exploring cutting-edge aerospace technologies, CASIC, guided by the strategy of “informatization, socialization, marketization and internationalization” and the industry function orientation of “mobilizing the wits of whole society in the development of overall design institute, overall design department and final assembly plant”, constantly takes every effort to create market opportunities and economic value of commercial aerospace industry by collecting resources, stimulating markets and using network thinking.
—Resources gather at Wuhan National Aerospace Industrial Base.
Since the commencement of construction, Wuhan National Aerospace Industrial Base, occupying an area of about ten thousand mu, has been attracting superior resources like technology, industry and capital from every corner of the society, and taking the lead in the development of the surrounding region. It has now become a strong support for the industrial development of “Yangtze River Economic Belt”.
ExPace Technology Corporation is the first enterprise settling down in the Base. The Corporation’s carrier rocket final assembly & overall commissioning center, with a planned land area of 450 mu and a building area of about 40000m2, is a core leading project of the Base. The structures of the project include the solid-propellant rocket subassembly workshop, the clean assembly workshop, the final assembly workshop and the final assembly & overall commissioning center (Phase I).
CASIC Space Engineering Development Co., Ltd. established by CASIC Second Research Institute, as well as the scientific research and production base for military-civilian integration electromagnetic protection materials sponsored by Hunan Aerospace Co., Ltd., has also landed here in the Base.
In the future, with focus on the new generation space launching technology and application, CASIC will attach its priority to the development of leading industries such as carrier rockets and launching services, satellite platform and payload, space information application, aerospace ground equipment and manufacturing through scientific and technological innovation, commercial mode innovation and management innovation. It will also drive the development of basic space industries at the same time, such as localized information technology, intelligent manufacturing, new materials and new energy, further pull extended industries including big data, intelligent industry and intelligent equipment progressing forward, so that a commercial space industry cluster with a complete system and several highlighted key points can be built.
As stated by Gao Hongwei, the development of commercial aerospace industry must rely on the enthusiasm of the government, the enterprises and the society. The national commercial aerospace technology innovation and entrepreneurship park financed and constructed by CASIC and Wuhan Municipal Government is a solid and essential foundation supporting the commercial aerospace industry of China to march toward the leading position of the world.
—Vitalize capital for development by stimulating the market.
“Crowd Funding”, as a new financing mode that breaks through the traditional fund raising channels, brings new vitality to the whole commercial aerospace industry.
On the day KZ-1A solid-propellant carrier rocket was launched, several strategic investors from various fund raising institutions came to the site watch the event. They were attracted by not only CASIC’s enthusiasm to commercial aerospace industry, but also the commercial launching services provided by CASIC.
On January 10, 2017, the day after the first commercial launching task of KZ rocket was successfully accomplished, CASIC, together with Hubei Yangtze River Economic Zone Industry Guide Fund, Wuhan municipal government investment platform and other social capitals, initiated and set up the Yangtze River Aerospace Fund. As the strongest fund in commercial aerospace industry, it will lead the investment to the commercial aerospace, military and civilian integration, mass entrepreneurship and innovation, reform toward mixed system, and merger and acquisition. It will also become the solid capital strength supporting the construction of Wuhan National Aerospace Industrial Base.
On April 24, 2017, Aerospace Science & Industry Financial Leasing Co., Ltd. (hereinafter referred to as “ASIFL”) formally put its business into application. ASIFL, the first financial leasing company held by the aerospace central enterprise, was funded and established by 6 central enterprises, local state-owned enterprises and financial institutions jointly.
On December 18, 2017, ExPace Technology Corporation signed agreements with 8 social institutional investors and completed the first round of capital increase. The fund raised in this round, including some private social capital, were invested to the research and development of Kuaizhou series carrier rocket products, the construction of rocket final assembly capacity and the business layout upstream & downstream commercial aerospace industry.
—The network thinking of sharing and collaboration is employed.
Unlike the development of traditional aerospace industry, CASIC is aware that we must give full play to the enthusiasm of the government, enterprises and society to develop commercial aerospace industry in our country.
Indeed as said by Chairman Gao Hongwei, “Whether it is industry peer, research institute, university, local government, entrepreneurial team, or state-owned enterprise, civilian-run enterprise, private enterprise, foreign enterprise, CASIC will seek for opportunity of cooperation with it.”
In the era of big data, the Internet is used for more practical purposes. Thanks to it, business opportunities and users can be identified based on the data. Therefore, we can explore boundless well-being that commercial aerospace industry can bring to the nation and the people from the vast ocean of information.
Guided by this goal, CASIC breaks the conservative self-oriented thinking and shares the benefit of the industry with more enterprises. Through the “commercial aerospace zone” on CASICloud, the first industrial Internet public service platform in China, CASIC appeals to manufacturers and suppliers for partnership openly and releases cooperative project proposals and collaboration guidance in batches. It provides all kinds of enterprises, research institutes, colleges and universities with the opportunities and platforms to participate in the commercial aerospace industry. In this way, the scientific research resources can be effectively allocated and the production capacity of the commercial aerospace industry can be effectively used. That is how the development of commercial aerospace industry is driven by innovations in a wider range and at a higher level.
“Bring together thousands of innovators and entrepreneurs scattered across the society with technology tools and on-line platforms, and integrate various resources in millions of companies in the community, so as to promote the industry progressing forward orderly.” says Chairman Gao Hongwei, who stresses more than once that rapid development of commercial aerospace industry is essential to the construction of a aerospace power. (Reported by Ke Xuan)
