BAE Systems: ‘4,000 UK jobs sustained’ by £2.4bn munitions contract

BAE Systems says a new 15-year contract to supply the UK’s armed forces with munitions will sustain 4,000 jobs at the company.

The country’s largest defence company said the new deal, from 2022, would unlock a £70m investment in its manufacturing lines and £350m in contracts for its UK supply chain.

It directly employs 1,260 people in munitions manufacturing and testing at five UK sites, including Glascoed in Monmouthshire and Bishopton in Renfrewshire.

BAE said the balance would be supported within its suppliers and within local economies.

The government said the contract – announced just days after an upgraded commitment to defence spending – would prove welcome additional support as industry battles coronavirus disruption and Brexit uncertainty.

Defence minister Jeremy Quinn said: “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 of BAE Systems, commented: “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.”

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