A Scottish rocket company has paused plans to build a spaceport in the Highlands.

Orbex said it wanted to shift its focus from building the site in Sutherland to developing small and medium-sized rockets.

It now aims to launch its first rockets from the SaxaVord Spaceport in Shetland.

The Moray-based firm said it would retain its lease in Sutherland and did not rule out further construction in the future.

The three staff employed at the site will be consulted to identify options for relocation or new roles, the company added.

This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition

Orbex had planned to carry out its first launch from the “carbon neutral” spaceport next year, using a 19-metre-long rocket powered by liquefied petroleum gas (LPG).

Initial construction in the area began last year after the firm was granted planning permission in 2020.

Orbex chief executive officer Phil Chambers said the move would help the firm deliver on its core mission of producing rockets, rather than building spaceports.

He said: “Orbex is first and foremost a launch services specialist. Our primary goal is to support the European space industry by achieving a sustainable series of satellite launches into low Earth orbit.

“This is best achieved by focusing our resources and talents on developing launch vehicles and associated launch services.

“This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition.

“It’s a win-win for UK and Scottish space.”

Orbex said it is planning to increase its manufacturing capability in Forres to meet demand for its smaller vehicle Prime.

It said the site will also be used to develop new medium-launch vehicles that will enable it to put more satellites into orbit.

Mr Chambers added: “While we appreciate this news means pausing the construction plans at Sutherland, we are still committed to the north of Scotland at our facilities in Forres and we look forward to building our presence at SaxaVord in Shetland as well.

“The decision to pause construction was not taken lightly. We are incredibly grateful to the Sutherland community for being so supportive of our initial plans to build our first spaceport there.”

Frank Strang, chief executive officer of the SaxaVord Spaceport, said: “We’re delighted to welcome Orbex to SaxaVord.

“Given the scale of their ambition and the evolution of their offer to include a medium-sized launch vehicle, it makes sense for Orbex to start operations from SaxaVord Spaceport, which is already licensed and in a position to support their upcoming launches.

“The UK’s space industry is developing very quickly and requires the associated economies of scale and synergies to maintain its competitiveness for launch services from Europe.”