Jacobs Engineering

Jacobs Engineering Group (United States) is involved in the joint venture AWE-ML. They are The AWE is responsible for warhead maintenance for the UK’s Trident II-nuclear arsenal. According to reports, the AWE facility is also developing a new warhead, the Mark 4A or Mk4A. The company is also part of the consortium responsible for the US nuclear weapons test site- Nevada National Security Site (NNSS) near Las Vegas.

Company profile

Jacobs Engineering Group, based in the US, provides professional, technical and construction services. Among its primary markets are aerospace and military, energy, oil and gas and infrastructure.[1]

In the financial year ending 30 September 2016, Jacobs Engineering generated revenues of US$ 11.0 billion (€ 9.8 billion), resulting in an operating income of US$ 338.6 million (€ 301.7 million) and a net income of US$ 210.5 million (€ 187.6 million).[2]

In December 2017 Jacobs Engineering fully acquired its competitor CH2M Hill.[3]

Contact Information

Contact Information

Website: www.jacobs.com

World Headquarters
155 North Lake Avenue
Pasadena, California 91101
United States
+ 1.626.578.3500

Nuclear Weapons

In December 2008, Jacobs Engineering acquired a one-third share in the joint venture AWE-ML, the company that manages the United Kingdom’s Atomic Weapons Establishment (AWE).[4] Following a previously equal distribution with partners Lockheed Martin and Serco, it was agreed during a restructuring in March 2016 that Lockheed Martin would increase its share to 51%, with Serco and Jacobs Engineering then holding 24.5% each.[5] The AWE is responsible for warhead maintenance for the UK’s Trident II-nuclear arsenal. AWE-ML is responsible for managing and operating the AWE sites at Aldermaston, Burghfield, and Blacknest, and is a partner in the consortium operating the nuclear arms depot in Coulport, Scotland. [6]

AWE’s involvement with Trident missiles covers the entire life cycle, from initial concept to assessment, design, component manufacture and assembly, in-service support and decommissioning and disposal.[7] AWE-ML has a 25 year-long non-revocable contract to run the AWE that expires in March 2025.[8] In the 15 years from 2000 to 2015, the contract had a value of an estimated £ 9 billion. The contract came under discussion in 2015 due to poor performance of the operator.[9] In March 2016, a modified contract that will run until 2025, between the Ministry of Defence and AWE-ML was agreed, described as including performance incentives as well as penalties for not meeting targets, and including the new consortium structure.[10]

According to recent reports, work is already under way at the AWE facilities in Aldermaston and Burghfield to upgrade the existing Trident II-arsenal. The “Nuclear Warhead Capability Sustainment Programme” also entails the development of an entirely new warhead, the Mark 4A or Mk4A.[11]

In May 2017 Mission Support and Test Services LLC (MSTS) was awarded “with the management and operating contract for the Nevada National Security Site (NNSS) near Las Vegas. MSTS is a limited liability company consisting of Honeywell International Inc. (Honeywell), Jacobs Engineering Group Inc. (Jacobs), and Stoller Newport News Nuclear, Inc. (SN3)”.[12] The US$ 5 billion (€ 4.6 billion) contract runs over 10 years if all options are exercised. “The 1,360-square mile NNSS is an experimental testing facility and training ground supporting a variety of nuclear nonproliferation and advanced-technology missions vital to national security. NNSS contributes to the safety, reliability, and security of the nuclear weapons stockpile through scientific experiments supporting the science-based Stockpile Stewardship Program”.[13]

Investors

Investors

The following financial institutions made approximately US$ 10,316 million available to this producer from January 2013 through October 2017.

  • ABP (Netherlands)  (they announced an intention to divest in early January 2018)
  • American Century Investments (United States)
  • ANZ (Australia)
  • AQR Capital Management (United States)
  • Artisan Partners (United States)
  • Banco Bilbao Vizcaya Argentaria (BBVA) (Spain)
  • Bank of America (United States)
  • Bank of New York Mellon (United States)
  • Barclays (United Kingdom)
  • BB&T (United States)
  • BlackRock (United States)
  • BMO Financial Group (Canada)
  • BNP Paribas (France)
  • Cacti Asset Management (United States)
  • Charles Schwab (United States)
  • Citizens Financial Group (United States)
  • Crédit Agricole (France)
  • Dimensional Fund Advisors (United States)
  • Fidelity International (Bermuda)
  • Fidelity Investments (United States)
  • Fifth Third Bancorp (United States)
  • Focus Financial Partners (United States)
  • Geode Capital Management (United States)
  • Goldman Sachs (United States)
  • Guggenheim Capital (United States)
  • Hahn Capital Management (United States)
  • HSBC (United Kingdom)

  • Industrial and Commercial Bank of China (China)
  • Invesco (United Kingdom)
  • JPMorgan Chase (United States)
  • Legal & General (United Kingdom)
  • Lloyds Banking Group (United Kingdom)
  • Lord, Abbett & Co (United States)
  • Madison Investment (United States)
  • Marshall Wace (United Kingdom)
  • Mitsubishi UFJ Financial (Japan)
  • Morgan Stanley (United States)
  • Northern Trust (United States)
  • PNC Financial Services (United States)
  • Power Financial Corporation (Canada)
  • Primecap Management (United States)
  • Royal Bank of Canada (Canada)
  • Royal Bank of Scotland (United Kingdom)
  • Ruane, Cunniff & Goldfarb (United States)
  • Scotiabank (Canada)
  • Standard Life Aberdeen (United Kingdom)
  • State Street (United States)
  • Sumitomo Mitsui Financial (Japan)
  • TIAA (United States)
  • Toronto-Dominion Bank (Canada)
  • US Bancorp (United States)
  • Vanguard (United States)
  • Victory Capital (United States)
  • Wells Fargo (United States)

Notes

Notes

[1]     Jacobs Engineering, “Markets Overview”, Website Jacobs Engineering (www.jacobs.com/markets#overview), viewed August 2017.

[2]     Jacobs Engineering, “Annual Report 2016”, Jacobs Engineering, November 2016.

[3]    Jacobs Engineering, “Jacobs Completes CH2M Acquisition, Creating $15 Billion Professional Services Leader Focused on Delivering Innovative Solutions for a More Connected, Sustainable World”, News Release Jacobs Engineering, 18 December 2017, available http://invest.jacobs.com/investors/Press-Release-Details/2017/Jacobs-Completes-CH2M-Acquisition-Creating-15-Billion-Professional-Services-Leader-Focused-on-Delivering-Innovative-Solutions-for-a-More-Connected-Sustainable-World/default.aspx.

[4]     Jacobs Engineering, “Jacobs Agrees to Acquire Share in AWE Management Limited”, News Release Jacobs Engineering, 17 December 2008.

[5]     AWE-ML, “Our company”, Website AWE-ML (www.awe.co.uk/about-us/our-company/), viewed August 2017;
Edwards, R., “Anger as US arms dealer takes over running of Scottish nuclear bomb base”, Scotland Herald (www.heraldscotland.com/news/home-news/anger-as-us-arms-dealer-takes-over-running-of-scottish-nuclear-bomb-base.13864732), 28 May 2011;
Serco, “AWE review concluded successfully and updated contract agreed”, Press Release Serco, 31 March 2016 (www.serco.com/news/media-releases/2016/awe-review-concluded-successfully-and-updated-contract-agreed).

[6]     AWE, “Our company”, Website AWE (www.awe.co.uk/about-us/our-company/), viewed August 2017;
AWE, “Overview”, AWE, July 2014 (www.awe.co.uk/app/uploads/2014/07/AWE-OVERVIEW-FINAL.pdf).

[7]      AWE, “Overview”, AWE, July 2014 (www.awe.co.uk/app/uploads/2014/07/AWE-OVERVIEW-FINAL.pdf).

[8]     The Guardian, “Britain’s nuclear spending soars amid defence cuts”, Website The Guardian, 2 October 2011 (www.guardian.co.uk/uk/2011/oct/02/ministry-of-defence-nuclear-spending-project-pegasus); AWE, “Annual review 2013”, AWE, May 2014.

[9]     Collingridge, J., “Nuclear contract may be scrapped”, Website The Sunday Times, 15 March 2015 (www.thesundaytimes.co.uk/sto/business/Companies/article1531071.ece).

[10]    UK Ministry of Defence, “MOD drives efficiencies in improved contract for nuclear sites”, Website UK Ministry of Defence, 31 March 2016 (www.gov.uk/government/news/mod-drives-efficiencies-in-improved-contract-for-nuclear-sites);

Serco, “AWE review concluded successfully and updated contract agreed”, Press Release Serco, 31 March 2016 (www.serco.com/media/pressreleases/awe-review-concluded-successfully-and-updated-contract-agreed).

[11]    Nuclear Information Service, “AWE: Britain’s Nuclear Weapons Factory Past, Present, and Possibilities for the Future”, Nuclear Information Service, June 2016 (www.nuclearinfo.org/sites/default/files/AWE-Past%2C%20Present%2C%20Future%20Report%202016.pdf); Ministry of Defence, “Appointment as Senior Responsible Owner for the Nuclear Warhead Capability Sustainment Programme”, Letter by the Ministry of Defence to Dr Paul Hollinshead, DST Director, 2 July 2014 (www.gov.uk/government/uploads/system/uploads/attachment_data/file/523656/Nuclear_Warhead_Capability_Sustainment_Programme_SRO_appointment_Letter_-_P.Hollingshead.pdf).

[12]    NNSA, “NNSA Awards Nevada National Security Site Management & Operating Contract to Mission Support and Test Services, LLC”, Press Release NNSA, 12 May 2017.

[13]    NNSA, “NNSA Awards Nevada National Security Site Management & Operating Contract to Mission Support and Test Services, LLC”, Press Release NNSA, 12 May 2017.

 

This page was last updated 25 January 2018.

Top 20 Producers

Looking for information on other nuclear weapon associated companies? Check here.

In some nuclear-armed states – in particular the United States, the United Kingdom and France – private companies are hired by governments to carry out work on maintaining and modernising nuclear arsenals.

This report looks at the top 20 companies that are providing the necessary components to develop, test, maintain and modernise nuclear weapons.The contracts these companies have with nuclear armed countries are for materials and services to keep nuclear weapons in their arsenals. The companies described are substantially involved in the nuclear weapons programmes of the United States, the United Kingdom, France, or India and are themselves based in France, India, the Netherlands, the United Kingdom and the United States. More information on other companies involved in nuclear arsenals, not listed in the top 20, can be found here.

In other nuclear-armed countries –Russia, China, Pakistan and North Korea – the maintenance and modernization of nuclear forces is carried out primarily or exclusively by government agencies.

Methodology

The nuclear weapon producers identified were selected on the basis of a predetermined set of criteria.
– Information on investments is publicly available.
– The company is directly involved in the development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services.
– The company’s involvement is related to warheads, or to delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

State owned or controlled nuclear industries are outside the scope of this research, as are companies not publicly listed. Our research uncovered a number of Universities involved in nuclear weapons programmes, but these are also outside the scope of the report.

The list of nuclear weapon producers investigated was compiled through a wide variety of sources, including financial institution exclusion lists, civil society reports, media reports, etc. Additional details on the contracts and components is on the website.
We welcome information at any time about possible nuclear weapon producing companies to investigate.