The £2.4bn military satellite contract is at the center of a heated battle between European manufacturer Airbus and US rival Lockheed Martin, with major implications for UK jobs and defense. Labour MP Wes Streeting faces an early test of the government's pledge to use public procurement to back British industry.
Background of the Skynet 6 Satellite System
The Skynet 6 wideband satellite system (WSS) will deploy two geostationary satellites to carry the UK Ministry of Defence's most sensitive data. This contract is one of the largest defense procurements in recent years and is seen as a bellwether for the UK's post-Brexit industrial strategy.
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Airbus vs Lockheed Martin: The Bids
Airbus, which designs and builds satellites in Stevenage and Portsmouth, has the backing of Unite union general secretary Sharon Graham. She warns that choosing Lockheed Martin would be a “massive mistake” and risks up to 600 jobs. Lockheed Martin, however, promises to create about 500 direct jobs in north-east England and an additional 1,500 in the supply chain, plus an assembly facility in Durham.
| Factor | Airbus (European) | Lockheed Martin (US) |
|---|---|---|
| Jobs promise | Preserves 600 existing UK jobs | Creates 500 direct + 1,500 indirect jobs |
| Intellectual property | UK-developed technology | US-based IP, though pledges UK retention |
| Export potential | Limited | Strong, with US integration |
| Political alignment | Aligns with Labour's 'Back Britain' pledge | Aligns with US nationalistic trade policy |
Key Stakeholders and Politics
Andy Burnham, the Labour mayor, has pledged to use public procurement to back British industry. The bid battle will test that commitment. Meanwhile, the new defence secretary, Wes Streeting, must navigate the tricky relationship with the Trump administration, which pressures allies to buy American. The Labour MP for Stevenage, Kevin Bonavia, is adding pressure to choose Airbus to preserve local jobs.
- Unite union warns of job losses if Lockheed Martin wins.
- Lockheed Martin offers a large new facility in Durham and a research partnership with Northumbria University.
- Airbus emphasizes UK-grown technology and existing workforce.
- Skynet 6 will carry sensitive MoD data for decades.
Implications for UK Defense and Industry
The decision will shape the UK's defense industrial base and its relationship with the US. If Lockheed Martin wins, it could lead to deeper integration with US military systems but also raise concerns about sovereignty over satellite technology. Conversely, an Airbus win would reinforce European defense ties and protect current engineering jobs in Hertfordshire and Hampshire.
FAQ
What is the Skynet 6 satellite contract?
Skynet 6 is a £2.4bn UK Ministry of Defence contract for two geostationary military communications satellites.
Who are the bidders for the contract?
The two main bidders are Airbus (European) and Lockheed Martin (US).
How many jobs are at risk?
Unite union says up to 600 existing jobs at Airbus UK sites could be lost if Lockheed Martin wins, though Lockheed promises new jobs in Durham.
What is the political significance?
The decision tests Labour's commitment to backing British industry and its relationship with the US under President Trump.
Stay tuned as the Ministry of Defence evaluates the bids. The outcome will resonate across the UK defense sector for years to come. For more business and defense news, follow GrandGoldman.com.
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