Burnham urged to award £2.4bn military satellite contract to Airbus over US rival

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📰 source: theguardian_business · 💼 business

the unite union is urging andy burnham to award a £2.4bn military satellite contract to airbus over lockheed martin, warning that as many as 600 jobs could be at risk. the skynet 6 wideband satellite system will be two geostationary satellites for the uk ministry of defence's most sensitive data. lockheed has promised 500 direct jobs in north-east england and 1,500 in the supply chain, plus export potential. but critics say the american firm would rely on us intellectual property instead of british technology. airbus and its predecessors have built all of the uk's military satellites for decades, including skynet 5. the bid battle is seen as an early test of burnham's pledge to use public procurement to back british industry. the decision also involves new defence secretary wes streeting, with the mod reportedly pushing for a decision by 1 august. unite's sharon graham said handing the contract to the americans would be a massive mistake industrially and politically. lockheed declined to comment, while airbus also declined.


why it matters: £2.4bn satellite contract decision tests labour's commitment to domestic industry and could affect future defence jobs and sovereignty.


source: theguardian_business
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