KODIAK, Alaska (AP) — The state-owned Alaska Aerospace Corporation has announced it's working toward starting a subsidiary company to operate in the private sector.

The corporation revealed its plans for the company called Aurora Launch Services earlier this month, the Kodiak Daily Mirror reported .

Alaska Aerospace has been pursuing options for a public-private partnership since state funding to the corporation ceased at the end of 2014.

Alaska Aerospace CEO Craig Campbell said he hopes to have all paperwork into the state to establish the company by January 2018.

"The infrastructure at Kodiak is clearly public infrastructure, but the operating side could be done more . cost-effectively from the private sector side," Campbell said.

The private company will take the services currently offered at Alaska Aerospace's complex and make them available to customers at launch sites worldwide, he said.

"We believe that, on the initial startup, it's going to be less expensive for another range to contract with us for the launch services during just the period they do a launch, than to have to hire everybody themselves," Campbell said.

Alaska Aerospace Board of Directors Chairman Robert McCoy said the rocket launch industry has changed significantly over the past five years, with commercial companies being able to provide lower cost launch services to both government and private sector industries.

"Aurora Launch Services will become an integral part of further decreasing the cost of launch, while providing Alaska Aerospace with a diversified source for revenues not solely generated from our Pacific Spaceport Complex-Alaska," McCoy said.

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Information from: Kodiak (Alaska) Daily Mirror, http://www.kodiakdailymirror.com