Ministry of Defence to manage AWE in Government renationalisation
AWE Management Ltd currently manages Aldermaston and Burghfield sites
The management of AWE sites in West Berkshire will revert to the Government next year.
AWE said it had been notified by the Ministry of Defence (MoD) of its plans to renationalise the management of the company, which has facilities in Aldermaston and Burghfield.
AWE manufactures warheads for the UK's nuclear deterrent Trident.
AWE plc is owned by a consortium through AWE Management Ltd, which was awarded the contract to run the West Berkshire sites in 2000.
Lockheed Martin controls a 51 per cent share. Serco and Jacobs Engineering own a 24.5 per cent each.
All AWE sites are owned by the MoD, and the Government has a golden share, meaning they can outvote other shareholders.
The AWE Management Limited contract will terminate from June 20, 2021.
In a statement AWE plc said: "The Ministry of Defence has announced that AWE plc will transfer to government ownership, becoming an Arms-Length Body wholly owned by the MoD.
"AWE plc will work closely with our MOD colleagues and AWE Management Limited to ensure a smooth transition. Our primary focus will be on the continued safe and secure operation of our sites, as we maintain progress on our critical programme."
The company said it was proud of its achievements and the significant progress it had made developing the unique, scientific and engineering national asset and executing a number of first of a kind projects in a complex and highly regulated environment.
The MoD said that the change would remove the current commercial arrangements and "enhance the MoD’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."
It added: "The decision was taken in order to simplify and further strengthen the relationship between the MoD and AWE plc, enhancing the MoD’s ability to invest in the development of the workforce, technology and infrastructure, and therefore in the future of AWE plc."
The MoD said it recognised the achievements of everyone involved with AWE and thanked AWE ML and its shareholders for its support.
Serco said it was proud to have been involved with AWE for the last 20 years, and would work with the other shareholders and the MoD to ensure a smooth transition to the new arrangements.
Serco operates many government contracts and has been criticised for its handling of the coronavirus test and trace system, with its call handlers reaching a lower proportion of people who had tested positive than local public health counterparts.
