The French aero-engine maker Snecma and EADS Space, a division of the European aeronautics group EADS, are considering an alliance in the area of space propulsion, Snecma said on Wednesday.

A link would concern the French part of its engine division Snecma Moteurs and the German activities of EADS SPACE Transportation.

Snecma said that the idea was to "strengthen the European space capability, technically and industrially".

The two companies had combined annual sales of about 400 million eurosmillion dollars). They specialise in liquid propulsion for satellite rockets and in electrical propulsion for satellites, and have cooperated for a long time on liquid propulsion systems for the Ariane space rocket.