WASHINGTON -- Arianespace, the French commercial space transportation company, is nearing completion of negotiations for its newest batch of 50 Ariane 5 rockets ordered from its European suppliers. Final contracts are to be signed by year's end, French space sources predict.

But this latest batch of throw-away rockets will be very different from the first two sets of boosters ordered by the commercial launch firm. The new Ariane 5s will be the cheapest ever, built under a new production schedule aimed at slashing the cost of the rocket and also its purchase price to customers worldwide in the process. Arianespace hopes to fend off the growing competition from such U.S. rocket makers as Boeing (with the Delta II and III, as well as Sea Launch) and Lockheed Martin (with Atlas III and Proton).

What really concerns the French firm is the pending prospects of the new U.S. EELVs (Evolved Expendable Launch Vehicles) due to enter commercial service in 2001. Said one French space industry source last year when contemplating the new U.S. boosters: "We are worried about these vehicles. We think the Americans are serious (about cutting costs)."

Even the second production batch of Ariane 5s have been trimmed of unnecessary expense during manufacture and assembly. And some new features are being added to the future rockets. In 2000, Ariane 5 will offer dual payload capabilities, able to payloads of up to 14,300 pounds (6,435 kg) into high orbit. A new upper stage that can be ignited in space will be added in 2001. A rocket stage using high performance liquid hydrogen fuel will be added to the sales lists in 2002, and more automated launch operations and upgrades to the launch site are planned for later in the decade.

France plans six Ariane 5 launches each year in 2000 and 2001, building up to eight in 2002. The proven but smaller Ariane 4 will continue service through 2004 in case of a delay with Ariane 5.

Ariane rockets have a largely successful flight history. There have been 86 launches conducted in the last 11 years, with a 97.2 percent success rate, according to the insurance tracking company Airclaims of London. Four new launch contracts have been signed for Ariane 5 rockets this year. Arianespace's backlog book stands at 42 satellites. The backlog represents $3.26 billion in business for the company.