Key facts
- The Unite union is urging Andy Burnham to award a £2.4bn military satellite contract to Airbus over Lockheed Martin.
- Concerns have been raised that up to 600 jobs could be at risk if the contract goes to the US company.
- Airbus designs and builds satellites in Stevenage and Portsmouth, UK, and has a long history with UK military satellites.
- Lockheed Martin has promised to create around 500 direct jobs and 1,500 supply chain jobs in the UK.
- The contract is for the Skynet 6 wideband satellite system, comprising two geostationary satellites for the UK Ministry of Defence.
The Unite union has urged Andy Burnham to award a £2.4bn military satellite contract to European manufacturer Airbus over US rival Lockheed Martin, citing concerns over potential job losses and the future of British industry. Sharon Graham, the union's general secretary, warned that choosing a US company would be a "massive mistake" and could put up to 600 jobs at risk.
Airbus designs and builds satellites in Stevenage and Portsmouth, UK, and has a long history of constructing the UK's military satellites, including the Skynet 5 system. Labour MP Kevin Bonavia also supports awarding the contract to Airbus to back British manufacturing and sovereign capabilities.
Lockheed Martin has countered by promising to create approximately 500 direct jobs and 1,500 supply chain jobs in the UK, including an assembly facility in Durham. The company has also invested in a research partnership with Northumbria University and pledged to retain intellectual property developed in the UK. However, critics argue that Lockheed's bid relies more on American technology.
Industry insiders suggest that awarding the contract to Lockheed could prompt Airbus to relocate its satellite construction operations. The decision is seen as an early test of the new government's pledge to use public procurement to support British industry and a significant early decision for Defence Secretary Wes Streeting.