BAE Systems lock and loads £2.4bn ammo deal
Defence giant BAE Systems has today signed a £2.4bn contract to supply the UK’s armed forces with ammunition for the next 15 years.
The Ministry of Defence said that the deal would support 4,000 jobs around the country over the next decade and a half.
The Next Generation Munitions Solution (NGMS) will see BAE make 39 different munitions for the Royal Navy, Army, Royal Air Force and Strategic Command to use on the front line.
These will include small arms ammunition, mortars, medium-calibre gun rounds and large-calibre artillery and tank shells.
An estimated 1,260 people will work on NGMS in engineering, operations and supporting roles across five BAE sites in Wales, Scotland, and the north of England.
A further 1,500 roles will be supported along the supply chain alongside 1,300 jobs as a result of consumer spending in local economies.
The new contract comes just days after Boris Johnson pledged an extra £16.5bn in defence spending over the next four years, the biggest increase since the end of the Cold War.
Defence Minister Jeremy Quin said: “This vital multi-billion-pound contract will provide our service men and women with fire power on the front line for years to come whilst investing in British industry, British jobs and British infrastructure.
“Defence underpins hundreds of thousands of jobs across all four corners of the nation, and ongoing investment is crucial as we work together to build back better and stronger from the Covid-19 pandemic.”
Under the contract, which begins in 2023, BAE will provide over half of the UK military’s armaments by value.
Chief executive Charles Woodburn said: “This contract secures the future of a highly technical and critical industry which supports thousands of manufacturing jobs in several areas throughout the UK.
“By investing in new technology and skills to further develop our expertise, we can continue to deliver essential sovereign capability to the Armed Forces at competitive prices.”
Shares in BAE rose over one per cent this morning.