The £2.4bn military satellite contract between Airbus and Lockheed Martin is a critical decision for the UK government, with Unite union urging Andy Burnham to choose Airbus to protect jobs. The Skynet 6 wideband satellite system will carry sensitive Ministry of Defence data, and the outcome will test Burnham’s commitment to using public procurement to back British industry.
Background of the Skynet 6 Contract
The contract involves two geostationary satellites that will replace the current Skynet 5 system. Airbus currently builds satellites in Stevenage and Portsmouth, employing about 600 workers directly involved in the project. Lockheed Martin, meanwhile, has promised 500 direct jobs in north-east England, including a new assembly facility in Durham, plus 1,500 supply chain roles. The US company also highlights potential export opportunities and integration with US military networks.
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Key Differences Between Airbus and Lockheed Martin Bids
| Factor | Airbus (European) | Lockheed Martin (US) |
|---|---|---|
| Job creation (direct) | Retains ~600 existing jobs | 500 new jobs in Durham |
| Supply chain jobs | Unknown; existing UK supply chain | 1,500 estimated |
| Intellectual property | UK-developed technology | US IP, but pledges to keep UK IP in UK |
| Export potential | Limited under US export controls | High, via US military ties |
| Political implications | Supports Labour union base and “Buy British” pledge | Aligns with US under Trump administration |
Sharon Graham, general secretary of Unite, called a US award a “massive mistake,” warning it would jeopardise UK defence sovereignty. Lockheed Martin counters that its offer includes a research partnership with Northumbria University and a commitment to retain any IP developed in Britain.
Political Pressure and Job Concerns
The Labour MP for Stevenage, Kevin Bonavia, has joined the union in lobbying for Airbus. The decision is one of the first major spending choices for new defence secretary Wes Streeting, as the UK navigates relations with Donald Trump’s nationalist US administration. Andy Burnham previously vowed to use public procurement to support British industry, making this a litmus test of that pledge.
Key Takeaways
- The contract is worth £2.4bn and involves two geostationary satellites for MoD communications.
- Airbus retains 600 UK jobs; Lockheed promises 2,000 total new positions.
- Unite union and local MPs strongly oppose awarding the contract to Lockheed Martin.
- Intellectual property rights and export potential are central to the debate.
- The decision will signal the UK’s defence posture relative to the US and Europe.
FAQ
What is the Skynet 6 wideband satellite system?
Skynet 6 is a £2.4bn programme to replace the UK’s military satellite communications network with two new geostationary satellites. It will carry the MoD’s most sensitive data.
Why is Unite union opposing Lockheed Martin?
Unite argues that awarding the contract to Lockheed could put at risk 600 existing jobs at Airbus facilities in Stevenage and Portsmouth, and would undermine UK technological sovereignty.
How many jobs does Lockheed Martin promise to create?
Lockheed Martin has pledged about 500 direct jobs in north-east England, including an assembly facility in Durham, plus 1,500 jobs in the broader supply chain.
What role does Andy Burnham play in this decision?
Andy Burnham, as UK government official (likely mayor or minister mentioned), has pledged to use public procurement to back British industry. The contract award will be an early test of that commitment.
The final decision on the military satellite contract is expected in the coming months. For now, the battle between Airbus and Lockheed Martin highlights the tension between preserving domestic jobs and strengthening transatlantic defence ties.
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