Britain's defence ministry announced on Monday that it has secured the contract to create nuclear weapons for the nation from a consortium containing Lockheed Martin, Serco and Jacobs Engineering beginning June 2021.
Flickr: Defence Images
Trident submarine HMS Victorious, part of the UK's nuclear deterrent
The three companies manage an entity called AWE Management, with each owning a majority stake in the firm.
The role of creating a British nuclear deterrent was first outsourced to private companies by the Blair administration back in 2000.
The government said in a statement: “The change in the model will remove the current commercial arrangements, enhancing the Ministry of Defence's agility in the future management of the UK’s nuclear deterrent, whilst also delivering on core MoD objectives and value for money to the taxpayer."
Serco announced on Monday that the firm would lose the contract to develop nuclear weapons, as AWE would be transferred back under the direct control of the ministry on June 20, 2021.
Shares in Serco fell by 13% once news of the transaction broke.
They said AWE were set to invest roughly £17 million into the project in 2020.
Sky News, who first broke the story, admitted they were unsure if the three companies would be compensated for the termination of their contract, which was not set to expire until 2025.
Back to Homepage
Back to Aerospace & Defence