1 minute read - 13th September 2023
BAE Systems secures new £130m MoD munitions order
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 (DE&S), part of the MoD, will be delivered via two BAE Systems facilities at Washington in Tyne and Wear and Glascoed in South Wales. The overall contract will create more than 200 new highly skilled jobs across the sites, boosting the company’s 1,200-strong UK munitions workforce.
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.
Glynn Plant, managing director of BAE Systems’ munitions business, said: “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.”
The £410m contract will also support investment including an additional 155mm machining line in Washington, a new explosive filling facility at Glascoed and reinstatement of a 30mm medium calibre manufacturing capability at Washington and Glascoed.