BAE Systems has secured an additional £130m of new orders for the supply of munitions to the UK Ministry of Defence (MOD). The award follows the decision by the MOD to exercise the option to increase the supply contract announced in July from £280m to £410m.
The full order with Defence Equipment and Support will be supplied via BAE Systems’ facilities in Washington, Tyne and Wear, and Glascoed, South Wales. The overall contract will create more than 200 new highly skilled jobs in the North of England and South Wales, boosting the Company’s 1,200-strong UK munitions workforce.
"This contract builds on our extensive relationship with the UK MOD as a strategic partner for munitions supply. Our teams are increasing production rates, investing in people and new facilities and maximising shift patterns to meet the enhanced demand whilst ensuring every shell meets our exceptionally high standards." Glynn Plant, Managing Director of the Munitions business at BAE Systems
"As the UK continues to back Ukraine’s resistance of Russia’s illegal invasion, it’s vital we ramp up our sovereign munitions production. This contract will further bolster ammunition stockpiles, whilst supporting our defence industry and backing hundreds of highly-skilled UK jobs." James Cartlidge, Minister for Defence Procurement
Building on the existing £2.4bn 15-year partnering agreement, the new orders will significantly increase the production of critical defence stocks of 155mm artillery shells, 30mm medium calibre rounds and 5.56mm ammunition. As well as bolstering the British Army’s heavy munitions stockpile, they will enhance the Army’s latest weapons systems and satisfy the increased demand for small arms ammunition.
The £410m contract will also support investment including:
An additional 155mm machining line in Washington, Tyne & Wear
A new explosive filling facility at Glascoed, South Wales
Re-instatement of 30mm medium calibre manufacturing capability at Washington and Glascoed