“This is an ongoing procurement process, and no final decisions have been made,” the UK Ministry of Defence told Breaking Defense — a terse line that sits at the centre of a dispute over a £2.4 billion ($3.2 billion) military satellite contract and the future of British jobs, manufacturing capacity and the domestic space industry.
Ministry of Defence: procurement status and the Skynet 6 plan
The procurement in question is for the Skynet Wideband Satellite System (WSS), part of the broader Skynet 6 Enduring Capability programme. The MoD says the programme will replace and expand the existing constellation with two tranches of satellites in geostationary Earth orbit carrying military-grade X‑band and Mil‑Ka‑band communications payloads, supported by new ground infrastructure and launch operations. The timing of any formal award remains unclear; the MoD reiterated to Breaking Defense that “no final decisions have been made.” The Prime Minister’s press office did not respond to a request for comment at press time.
Airbus Defence and Space UK: jobs and UK production sites at stake
Airbus Defence and Space UK currently designs and builds Skynet satellites at facilities in Stevenage and Portsmouth, England. If Airbus loses the WSS contract, those sites and the jobs there would be directly affected — a point emphasised by Unite, the union that represents Airbus workers, which renewed calls for the government to award the contract to Airbus and said it “understands that some Ministry of Defence officials are willing to support the American bid.” Airbus declined to comment on the competition, citing the ongoing MoD procurement process.
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End the scrambleLockheed Martin UK: Durham hub promise and competing claims
Reports last week — Sky News, citing four industry sources — said the MoD had selected Lockheed Martin for the WSS award, and that Prime Minister Andy Burnham was reviewing that purported decision. Lockheed Martin declined to comment directly to Breaking Defense but said its British subsidiary, Lockheed Martin UK, “will establish facilities to develop an ecosystem alongside our regional partners in the North East of England to provide the UK with a sovereign space capability.” The company has proposed a new production hub in County Durham, which it says would create a domestic manufacturing base and export opportunities.
Those claims are contested in public debate. Ben Moores, a former UK defence secretary procurement advisor, posted on X that a Lockheed Martin contract would leave UK work “the equivalent of fitting the wheels on a US-built car,” and asserted a first satellite built by Lockheed would be made in Denver, Colorado. In contrast Durham lawmaker Luke Akehurst said on social media that “all the satellites will be built in County Durham” if Lockheed secures the deal.
Political, industrial and policy pressure: unions, government messaging and Project Bromo
The contest comes as the Burnham government champions a “buying British” defence investment policy while also pledging closer ties with European allies. Unite’s intervention reflects domestic political pressure to favour British suppliers. Analysts warn the decision also has European implications: Erin Pobjie, senior fellow for space at the International Institute for Strategic Studies, said a Lockheed win “might affect the continuation of Airbus satellite operations in the UK, with the knock-on effect of locking the UK out from the benefits of the planned merger of Airbus, Thales and Leonardo in Project Bromo.” Those three European primes signed a pact in 2025 to bring their space businesses together into a joint entity slated to begin operations in 2027.
Sovereignty, supply chains and capability: what analysts caution
Questions about sovereign control over military satellites have been sharpened by recent disputes elsewhere, but analysts in this story cautioned against direct comparisons. Pobjie said, “If the UK government’s Skynet contract is with Lockheed Martin’s UK subsidiary to manufacture satellites that are then owned, registered and operated by the UK government, the US government cannot directly impose restrictions on access.” She added a caveat that even a UK‑owned system “could still leave the country reliant on US supply chains and export licenses for critical components, while also potentially exposing it to end‑user restrictions depending on the contract terms.”
Tom Withington, an associate fellow at the Royal United Services Institute, noted the MoD could retain “full ownership” and end Lockheed’s “further involvement” after manufacture, though he warned that would likely raise costs because the ministry would need to train personnel to maintain the satellites. Withington also described the WSS as a “key enabler” for the UK’s Digital Targeting Web programme and emphasised the importance of X‑band, noting the frequency band is “earmarked for military and government use by the International Telecommunication Union. … So other people can’t muscle in and sort of challenge your use of it.”
How Airbus workers in Stevenage and Portsmouth, Lockheed Martin UK in County Durham, and the Burnham government are responding
- Airbus workers in Stevenage and Portsmouth: Unite’s renewed call for the contract to go to Airbus signals organised labour pressure to protect local jobs and maintain UK production sites.
- Lockheed Martin UK and County Durham stakeholders: Lockheed’s public commitment to establish facilities in the North East frames a narrative of new domestic industrial capacity and future export potential — a claim disputed by critics.
- The Burnham government and defence policymakers: Balancing a stated “buying British” posture with choices that may deepen ties with the US or affect Project Bromo will shape procurement messaging and political risk ahead of any final award.
The MoD’s statement that “no final decisions have been made,” the Sky News report that the prime minister is reviewing an alleged Lockheed award, and competing, consequential claims about where satellites will be built leave a single, concrete next step: a formal announcement. Until then, billions of pounds, several industrial sites and a contentious question about UK sovereign control remain unresolved.
