BAE Systems set for £1.3bn boost from German Eurofighter deal
Defence giant BAE Systems will receive a £1.3bn windfall from the German government’s purchase of 38 Eurofighter jets, it was confirmed today.
Last week German officials announced the deal, which is worth around €5.4bn in total.
The FTSE 100 company is part of an Airbus-led consortium which builds the jet fighter.
The Times yesterday reported that BAE, which will make parts for the aircraft at its plant in Warton in Lancashire, would secure at least €1bn from the deal.
In a statement this morning, BAE said that its role in the programme would support 15,000 jobs in the UK.
BAE will make more than a third of the parts for the jet, including its front fuselage and tail sections. Production will begin in 2021.
Chief exec Charles Woodburn said: The Typhoon programme makes a significant contribution to the UK economy, generating billions of pounds through exports and supporting more than 15,000 jobs across the UK including thousands of highly skilled roles in the North of England.”
In a market update yesterday, BAE said that it was raising its earnings forecast for the full year, with sales remaining strong despite the coronavirus pandemic.
“We have continued to deliver a resilient performance in line with our expectations for a strong second half, thanks to the outstanding efforts of our employees in these challenging times,” said Woodburn.
BAE is also working with a slew of defence giants on a new fighter jet to replace the Eurofighter.
Project Tempest, as the new aircraft is known, could support 20,000 new jobs in the UK, it has forecast.