AN ENGINEERING company that supplies a component to Britain’s Dreadnought next-generation nuclear submarines is considering selling off part of its operations to a foreign company, in what campaigners warned is further proof that the so-called defence dividend is a lie.

The 143-year-old firm Goodwin confirmed it is in talks to sell off part of its business on Friday.

Goodwin said it has started a strategic review which would see the sale of a “substantial part” of its mechanical engineering division.

The company said “it has commenced a strategic review to consider a range of potential options to maximise value for shareholders while ensuring continuity for all stakeholders, including customers, and the long-term prosperity of its businesses.

“These options include the potential sale of a substantial part of the mechanical engineering division, which includes GSC (Goodwin Steel Castings), GI (Goodwin International), Noreva, Easat and Pumps.”

The mechanical engineering division is a key supplier of components to UK and US frigate and submarine programmes.

This includes the Dreadnought programme, which was contracted to build the Royal Navy’s next-generation nuclear deterrent submarines and the Type 26 frigate programme, which is developing a fleet of advanced anti-submarine warships.

CND general secretary Sophie Bolt said the fact Goodwin “could be bought out by a US arms company, is more proof that the ‘defence dividend’ argument pushed by the government is just not true.”

“We know that many US arms giants, like Lockheed Martin, are buying up smaller arms companies in a bid for even greater profits,” she told the Star.

“Make no mistake, these military spending hikes will make ordinary people poorer while filling the pockets of arms company shareholders.

“Instead, this government needs to invest in areas of the economy that can genuinely boost jobs and tackle the urgent threats from climate breakdown and rebuild our devastated public services.”

Several potential buyers that have records in defence have expressed interest in Goodwin in recent weeks, the Financial Times reported.

Goodwin said discussions were ongoing and that there was no certainty of a sale taking place.

Goodwin Steel Castings and Goodwin International have boosted the company’s profits, benefiting from countries’ recent increases in defence spending, according to its latest annual report.