Boeing Gets Large Mexican Contract

0

Boeing Co. on Monday said that its El Segundo satellite systems unit has won a contract, valued at about $1 billion, to provide an upgraded satellite communications system for the Mexican government.

Local officials of the Chicago defense contractor said the MEXSAT system will include three satellites – two of which it will build locally – plus two ground sites, network operations systems and user terminals.

The system will provide communications for Mexico’s national security needs and social programs, such as disaster relief and telemedicine. The program is designed to provide high-speed voice and data communications even in remote areas.

For Mexico’s satellite communication capabilities, “this is a step forward into the 21st century,” said Steve O’Neill, president of Boeing Satellite Systems International Inc., during a press teleconference.

Boeing will build the contract’s two geomobile satellites, which will help connect remote regions. The third, fixed-orbit satellite will built by a Boeing partner, Orbital Sciences Corp, based in Dulles, Va. The Orbital satellite is expected to be the first launched, likely in the third quarter of next year.

Boeing has about 5,500 employees in the El Segundo area and the contract is expect to preserve jobs but not necessarily add any, O’Neill said. Several area subcontractors also will benefit.

Though the Mexico considered as many as six companies for the contract, Boeing had the advantage of having provided five communications satellites to the country since 1985. Two are still in service, though one is expected to go out of commission in 2012.

No posts to display