WASHINGTON, Oct 30 (Reuters) - President Donald Trump's
order for the Defense Department to start testing nuclear
weapons could lead to billions of dollars' worth of contracts
for a handful of specialized companies that dominate the United
States' nuclear weapons infrastructure.
The Trump announcement Wednesday night from South Korea ordered
the Department of Defense to "immediately" start testing nuclear
weapons, something the United States has not done since 1992.
The U.S. nuclear arsenal consists of land-launched nuclear
missiles, nuclear missile-armed submarines and aircraft with
nuclear bombs and missiles. It was unclear which portion of the
arsenal Trump wanted to test.
COMPANIES IN LINE TO BENEFIT
An investment in nuclear weapons and testing could benefit
Honeywell International ( HON ), BWX Technologies ( BWXT ),
Chugach Alaska Corp, Jacobs Solutions, Inc. ( J ), Mele
Associates, General Atomic Technologies Corporation and others
due to their specialization in nuclear test site construction,
operations, support and related engineering services, according
to Govini, a defense software company.
BWXT works with nuclear materials, while Honeywell ( HON ) runs a
key testing site, conducts tests and helps track the U.S.
nuclear stockpile.
Mele helps manage parts of the nuclear stockpile while
helping make sure nuclear material does not fall into the wrong
hands.
"Restarting nuclear weapons testing is going to reverberate
in a lot of ways, including by sending a shockwave of government
funding to companies in test site construction and engineering
support," said Tara Murphy Dougherty, CEO of Govini.
Alongside a new testing program, the U.S. is modernizing
its ground-launched intercontinental ballistic missile program,
aimed at replacing the aging Minuteman III missiles.
Northrop Grumman ( NOC ) was awarded a sole-source contract in
2020 to develop the Sentinel, with subcontractors including
Lockheed Martin ( LMT ), General Dynamics ( GD ), Bechtel,
Honeywell ( HON ), Aerojet Rocketdyne, and Textron ( TXT ).
The program, which requires extensive testing while it is
being built, represents one of the largest defense modernization
efforts in decades.
The plan includes 634 new Sentinel missiles, plus an
additional 25 missiles to support development and testing, being
procured to replace the aging Minuteman III system deployed in
1970.