Defence row erupts over American bid to build Britain’s military satellites

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On the edge of an industrial estate in County Durham, just north of the market town of Sedgefield, the ground has been prepared for a new factory. It's here, in the North East Technology Park, that American defence giant Lockheed Martin is proposing to build a new generation of military satellites for Britain. The company says its factory will bring 500 skilled jobs and a valuable hub of space expertise to the region. But there's a catch: all this will only materialise if the Ministry of Defence (MoD) awards Lockheed's UK subsidiary a £2bn contract to run Britain's Skynet military communication system. The process has ignited a storm of controversy.