Google-owning satellite maker Rostec is partnering with Russian company Rastex to sell some of its antenna manufacturing capacity, according to a report by the Wall Street Journal.
Rastec and its subsidiary Rostec-Avant are partners in a deal to acquire some of the company’s existing production capacity.
Rostec, which was spun off from Google in 2014, is now the world’s largest satellite manufacturer.
The Journal’s report notes that the deal is expected to close by the end of 2019.
The deal would allow Rastenec to ramp up production of its own advanced satellite antenna modules and other related components, the WSJ reports.
Rostec, a unit of Alphabet Inc., was spun out of Google in January 2016 to form Alphabet’s parent company.
The company is a Google subsidiary and its products are used by some of Google’s services, including search, YouTube, Maps and Gmail.
Google’s satellite business has been hit hard by the U.S. election, which has brought a slew of new competitors into the satellite market.
In January, Google agreed to pay a record $4.8 billion to buy out the ULA satellite division.
The deal was intended to help it secure the satellite business for its own use.
Last year, the FCC approved the sale of a $3.4 billion contract with Boeing to build four Boeing 787 Dreamliner jets for the National Airspace System, which includes more than 20,000 satellite antennas.