WELLINGTON, June 4 (Reuters) - The grassy plains on the

east coast of New Zealand's South Island, once home to cattle,

have been transformed into a key aerospace facility for the

Pacific nation as it looks to become a global hub for advanced

aircraft and space exploration.

New Zealand is inviting aerospace firms from around the

world to set up at the new Tawhaki National Aerospace Centre on

the Kaitorete spit, a 25 kilometre (15.5 mile) long and 3km wide

coastal site.

The centre, in which the government has to date invested

NZ$29.4 million ($17.97 million), is part of an ambitious plan

to turn the country's nascent aerospace sector into a

significant contributor to the agriculturally dependent economy.

There is little air traffic over the spit, launches over

water minimise risk from falling debris, and a latitude deep in

the Southern Hemisphere makes it easier to place satellites in

specific orbits.

"You cannot underestimate our location in the world and

how that is an enormous advantage," said Judith Collins, who

became the country's first space minister after the government

was elected in October 2023.

Globally the space and aerospace industries are growing

fast; there were 50% more commercial space launches in 2023 than

a year earlier, according to the U.S. Space Foundation. Three

industry experts said New Zealand's location gives it a leg up

as it tries to muscle deeper into the more than $600 billion

global market.

The country hosted seven rocket launches last year, the

fourth-most globally, all by the U.S.-listed and New

Zealand-founded Rocket Lab. The success of the $2.07

billion company, which has launched 44 rockets in New Zealand

since 2017, has helped develop a space technology sector that

includes the likes of titanium 3D printer Zenith Technica.

But New Zealand is still a small player, even relative

to its neighbours, with Australia's space sector worth around

A$5 billion ($3.33 billion) annually and Japan's worth $27

billion.

New Zealand's space industry was worth roughly NZ$1.7

billion ($1.04 billion) in 2019 - the latest data available -

and the government wants to grow the aerospace industry to NZ$10

billion by 2030, offering a needed jolt to an economy that is in

recession and struggling from weak productivity.

To do that, the government said ahead of being elected

that it wants to reduce the regulatory burden for launches,

testing and employment in the space sector.

New Zealand has signed several agreements to ease

international collaboration, and in April, Collins met with NASA

and U.S. Space Command officials to promote New Zealand.

A local government owns and is growing a satellite

monitoring facility in the southernmost part of New Zealand for

clients that include the European Space Agency.

TO SPACE AND BEYOND

Tawhaki, a partnership between the government and local

indigenous people, was chosen for its location near a main city

and port on the east coast, so launches head off over the sea.

At the moment, however, only advanced aircraft are being tested

there.

"The reason Tawhaki was established was because of

productivity. It was about how do we get more jobs, higher

growth jobs, higher tech jobs, and start to think about land use

in a different way," said Linda Falwasser, the facility's chief

executive.

More than 5,000 New Zealanders were directly employed in the

space sector in 2019, up from almost none fifteen years earlier.

There are more than 20 firms in the country founded solely to

provide space-related services, according to New Zealand

consultancy SpaceBase.

"There are a wide range of space and advanced aerospace

projects that are starting to kick along and creating a lot of

jobs and a lot of value for New Zealand," said Mark Rocket,

president of Aerospace New Zealand and founder of Kea Aerospace,

which uses Tawhaki for trials.

At Tawhaki, four companies, including Boeing ( BA )

subsidiary Wisk Aero, have publicised using the facility to test

new technology; facility officials say that others are there

too, but that they can't discuss them for privacy reasons.

Wisk's uncrewed aircraft successfully launched from

Tawhaki late last year and flew into controlled airspace

alongside a crewed aircraft in what is thought to be a

commercial global first.

Falwasser said that her facility is negotiating with both

German and Singaporean entities who are eager to use Tawhaki,

and that she had just returned from a trade mission with the

prime minister to Southeast Asia to drum up business.

"We're not here to build a white elephant. We're here to

build or to engage on opportunities based on real demand," she

said. "Vertical orbital launch is our next step."

($1 = 1.5024 Australian dollars)

($1 = 1.3487 Singapore dollars)

($1 = 1.6287 New Zealand dollars)

($1 = 1.6361 New Zealand dollars)