BAE Systems Secures £2.4 Billion Deal to Enhance UK Military Arsenal
BAE Systems has secured a new 15-year agreement for the provision of munitions to the UK Ministry of Defence (MOD). This contract, valued at £2.4bn, will maintain around 4,000 employment opportunities across the UK.
This recent arrangement, which will replace the existing contract set to finish at the close of 2022, will ensure the supply of munitions products and engineering assistance to the UK Armed Forces.
BAE Systems employs directly 1,260 personnel engaged in munitions production or testing and evaluation at five locations throughout the UK; Glascoed in Monmouthshire, Radway Green in Cheshire, Washington in Tyne & Wear, Bishopton near Glasgow, and Ridsdale in Northumberland.
It is expected that the contract will also aid in preserving an additional 1,500 jobs within the UK supply network and bolster another 1,300 positions stimulated by consumer expenditure in economies local to these sites.
The agreement allows BAE Systems to allocate £70 million for the renovation and enhancement of production lines, with 75% of this amount earmarked for investment by 2026. The Company will also disburse up to £350m with UK-based firms for raw materials and components.
Charles Woodburn, Chief Executive of BAE Systems, stated: “This agreement secures the future of a highly skilled and crucial sector that supports thousands of manufacturing jobs in various regions of the UK. By investing in cutting-edge technology and expertise to enhance our skills, we can continue to provide essential sovereign capability to the Armed Forces at competitive prices.”
Defence Minister Jeremy Quin remarked: “This essential multi-billion-pound agreement will equip our service men and women with firepower on the frontline for many years to come while investing in British industry, employment, and infrastructure. Defence underpins hundreds of thousands of jobs across every corner of the nation, and continued investment is vital as we collaborate to rebuild stronger and better from the Covid-19 pandemic.”
The contract, termed the ‘Next Generation Munitions Solution’ (NGMS), is set to initiate in January 2023 and will take over the existing ‘Munitions Acquisition, Supply Solution’ (MASS) contract, which started in 2008. It mirrors the longstanding collaboration between BAE Systems and the UK Armed Forces, especially the British Army.
