The UK Government have signed a new £2.4 billion contract with BAE Systems to supply munitions to the British Armed Forces.
The Next Generation Munitions Solution (NGMS) will see BAE Systems manufacture 39 different munitions for the Royal Navy, Army, Royal Air Force and Strategic Command to use on the front line, including small arms ammunition, mortars, medium-calibre gun rounds and large-calibre artillery and tank shells.
BAE Systems forecasts it will spend £350 million with UK-based companies on raw materials and machine components.
An estimated 1,260 people will work on NGMS in engineering, operations and supporting roles across five BAE Systems UK sites, including:
- 555 jobs – Glascoed, South Wales
- 320 jobs – Radway Green, Cheshire
- 340 jobs – Washington, Tyne & Wear
- 30 jobs – Bishopton near Glasgow
- 15 jobs – Ridsdale, Northumberland
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, say the UK Government.
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.”
Charles Woodburn, Chief Executive, BAE Systems, 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.”
According to the Ministry of Defence, replacing the current contract from January 2023, the NGMS will deliver about 50 per cent, by value, of the MoD’s total general munitions portfolio and will “maximise military capability and reduce cost”.