The UK government faces a significant procurement decision regarding the Skynet 6 wideband satellite system, a £2.4bn contract that will involve two geostationary satellites designated to carry the Ministry of Defence’s most sensitive communications. Two major manufacturers are competing for the award: Airbus, a European company with design and manufacturing operations in Stevenage and Portsmouth, and Lockheed Martin, a US-based defence contractor.
Unite union general secretary Sharon Graham has publicly advocated for selecting Airbus, characterizing a US award as a “massive mistake.” The union represents workers currently employed in satellite production at Airbus’s British facilities. Labour MP Kevin Bonavia, representing Stevenage where significant manufacturing occurs, has similarly urged the government to choose Airbus to safeguard existing employment and demonstrate commitment to domestic industry.
Lockheed Martin has made a competing offer centred on job creation, pledging approximately 500 direct positions in north-east England through an assembly facility in Durham, alongside an estimated 1,500 supply chain positions. The company emphasizes export potential and integration with US military systems as key advantages. Lockheed has committed to retaining UK-developed intellectual property and has established a research partnership with Northumbria University in Newcastle.
Critics of the Lockheed bid argue the company would prioritize American intellectual property over British-developed technology, potentially undermining the UK’s sovereign satellite capabilities. Industry observers have warned that selecting Lockheed could incentivize Airbus to relocate satellite manufacturing operations from Britain. Additionally, the choice affects a planned merger consolidating space operations among Airbus, France’s Thales, and Italy’s Leonardo.
The decision represents an early test of the current government’s stated commitment to leveraging public procurement to support British industry. It also constitutes a significant early defence spending decision under the new defence secretary. Industry publications reported the Ministry of Defence was targeting a decision timeline of early August. Airbus declined to comment on the competition, while Lockheed Martin emphasized its commitment to UK-based operations and partnerships with local companies and academic institutions.
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