The Ministry of Defence has topped up its order of bullets from engineering giant BAE Systems by a further £130m.
The deal brings additional work to the firm’s factories in the North East and Wales, coming on top of a £280m supply contract announced in July. At the time, the MoD said it had the option to increase the deal to £410m – an option it has now decided to exercise.
The full order with Defence Equipment and Support will be supplied by BAE Systems’ facilities in Washington, Tyne and Wear, and Glascoed, South Wales and the overall contract will create more than 200 new highly skilled jobs, boosting the company’s 1,200-strong 海角视频 munitions workforce. In all, the deal is creating 101 production operative roles at the firm’s site at Washington, Tyne and Wear, as well as 65 jobs at Radway Green, Cheshire, and a further 45 at Glascoed, South Wales.
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The new orders build on its existing £2.4bn 15-year partnering agreement, and will significantly increase the production of defence stocks of 155mm artillery shells, 30mm medium calibre rounds and 5.56mm ammunition. BAE Systems said that, 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.
Glynn Plant, managing director of the munitions business at BAE Systems, said: “This contract builds on our extensive relationship with the 海角视频 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.”
James Cartlidge, Minister for Defence Procurement, said: “As the 海角视频 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 海角视频 jobs.”
The £410m contract is also supporting a number of investments across the business, including an additional 155mm machining line in Washington, a new explosive filling facility at Glascoed, and the re-instatement of 30mm medium calibre manufacturing capability at the two bases.