BAE wins £2.4bn UK munitions contract
By Sean Farrell
Date: Monday 30 Nov 2020
(Sharecast News) - BAE Systems has won a £2.4bn contract to supply the UK government with munitions in a deal the company said would sustain about 4,000 British jobs.
The 15-year deal with the Ministry of Defence will replace the current contract, which ends in December 2022. It will guarantee the delivery of munitions and engineering support for the UK armed forces.
The FTSE 100 aerospace and arms group employs 1,260 people in munitions across the UK. The contract will also support 1,500 jobs in the UK supply chain and another 1,300 through consumer spending in economies close to the sites, BAE said.
BAE said it would invest £70m upgrading its manufacturing operations with 75% spent by 2026. It will also spend up to £350m with UK-based companies on materials and components.
Charles Woodburn, BAE's chief executive, 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."
BAE shares rose 1.2% to 510.20p at 11:27 GMT.
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