The decision will generate hundreds of millions of pounds of revenue for the British defence industry, with the potential to unlock more than 2 billion pounds of future F-35 support revenue over the lifetime of the programme.

"This establishes Britain as a hub for all European F35s and is hugely positive news for our high-tech and innovative defence industry," Defence Secretary Michael Fallon said.

"Building on the strong foundations of Britain’s pre-eminent and enduring defence partnership with the US, this decision supports British jobs and helps keep Britain safer and more secure."

The UK offering will be based on a partnership enterprise between Defence Electronics & Components Agency (DECA), BAE Systems (>> BAE Systems plc) and Northrop Grumman, supported by key F-35 Original Equipment Manufacturers. The work will be centred in Wales.

(Reporting by Guy Faulconbridge; editing by Stephen Addison)

Stocks treated in this article : Lockheed Martin Corporation, BAE Systems plc