Confirmation of state aid from the Israeli Ministry of Science, Technology and Space will allow Spacecom to pull out of the $112 million deal made in March with Space Systems/Loral.
Instead Amos 8 will be manufactured in Israel by state-owned Israel Aerospace Industries.
“The development and the production of the satellite in Israel will enable us to maintain complete independence in the field of satellite communication. Building it in Israel will preserve the knowledge and expertise in the field that have been obtained during tens of years in local industry,” said Science and Technology Minister Ofir Akunis
Spacecom has faced a series of problems since Amos 6 was destroyed in a major explosion during a test firing of the Space X rocket at the Cape Canaveral Air Force Station in September 2016.
Amos-8 is intended to replaced Amos 6 that is slated for a 2020 launch.