Boeing is looking to jettison the space business. Why it might hold on to its El Segundo satellite operation

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Analysts expect that struggling Boeing Co. will hold on to its El Segundo satellite programs if it exits the space industry amid stiff competition from SpaceX.

With its manufacturing practices under scrutiny, its machinists on strike and losses piling up, Boeing is said to be considering selling parts of its fabled space business. But few industry analysts think Boeing will put its extensive El Segundo satellite operations on the table.

'It's still a good business but it's going to be diminished, because it really is these big, mega constellation systems that are the future,' he said. In 2018, Boeing acquired a maker of small satellites called Millennium Space Systems, which also is based in El Segundo and whose operations have been partially integrated with the company's existing plant. The company has received U.S. defense contracts for satellites to detect new threats such as hypersonic missiles.

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