Boeing has signed a deal with Nasa and Space Florida to build an Orbiter Processing Facility-3 at NASA’s Kennedy Space Centre (KSC) in Florida, US.

The new facility will manufacture and assemble crew space transportation capsules (CST-100) which will transport astronauts to the International Space Station in low Earth orbit.

Under the deal, Boeing will take over Nasa’s old space shuttle hangar at the Kennedy Space Centre which will be used by the company to test and build new spaceships.

The 15 year agreement is part of Nasa’s new Commercial Crew Programme for future development of space transportation systems at the Kennedy Space Centre through private partnerships.

The CST-100 will be a reusable capsule with a capacity to ferry up to 7 crew members into orbit.

This crew launch system is part of the new strategy of Nasa which plans to send astronauts on smaller rockets separately from the cargo which is launched by heavy launch capable systems.

Currently, Nasa is depending on Russia to ferry astronauts to the International Space Station.

Nasa is expecting private companies to ferry cargo and astronauts to and from the International Space Station in three to five years.