£2.4 Billion Munitions Deal Secures Thousands of UK Jobs
(Source: UK Ministry of Defence; issued Nov. 30, 2020)
The contract will deliver a range of munitions including small arms ammunition, mortars, medium-calibre gun rounds and large-calibre artillery and tank shells. (MoD photo)
A new £2.4 billion contract to equip UK Armed Forces with essential fire power will sustain 4,000 jobs around the UK over 15 years, Defence Minister Jeremy Quin today announced.

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.

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.

Today’s announcement follows the substantial £16.5 billion settlement for defence over four years that will modernise the armed forces and bring jobs and prosperity to every part of the UK.

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.”

Replacing the current MASS (Munitions Acquisition, the Supply Solution) single-source contract from January 2023, the NGMS will deliver about 50 per cent, by value, of the MOD’s total general munitions (GM) portfolio and will maximise military capability and reduce cost.

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.”

The new contract will offer better value for money as it includes incentives for BAE Systems to make savings over the life of the contract.

In its bid, BAE Systems identified about £400 million of savings and efficiency opportunities to be pursued up to 2038 to meet this challenge. The contract also includes flexibility to vary the volume of orders and allow GM products to be added or removed, depending on front-line requirements.

Ed Cutts, DE&S Director Weapons, said: “This new, improved contract with BAE Systems secures the supply of cutting-edge key munitions for the front line while delivering even greater value for money for the taxpayer.

“We look forward to continuing our collaboration with BAE Systems to deliver on the opportunities this partnership and agreement present.”

As it delivers the munitions, BAE Systems forecasts it will spend £350 million with UK-based companies on raw materials and machine components.

It pledges to invest more than £70 million refurbishing and upgrading manufacturing lines, including £32 million at Glascoed, £27 million at Washington and £12 million at Radway Green.

The company will also invest in the next generation by recruiting over 200 apprentices and graduates during the course of the contract.

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BAE Systems Awarded £2.4 Billion Munitions Contract to Equip UK Armed Forces
(Source: BAE Systems; issued Nov. 30, 2020)
BAE Systems has been awarded a new 15-year contract for the supply of munitions to the UK Ministry of Defence (MOD). The contract, worth £2.4bn, will sustain approximately 4,000 jobs across the UK.

This new agreement, which will supersede the current contract due to conclude at the end of 2022, will guarantee the delivery of munitions products and engineering support to the UK Armed Forces.

BAE Systems directly employs 1,260 people who are involved in either munitions manufacturing or test and evaluation at five sites across the UK; Glascoed in Monmouthshire, Radway Green in Cheshire, Washington in Tyne & Wear, Bishopton near Glasgow, and Ridsdale in Northumberland.

It is anticipated that the contract will also help sustain a further 1,500 jobs in the UK supply chain and support a further 1,300 jobs induced by consumer spending in economies local to sites.

The agreement enables BAE Systems to invest £70 million on the refurbishment and upgrade of manufacturing lines, with 75% of this value being invested by 2026. The Company will also spend up to £350m with UK-based companies on raw materials and machine components.

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.”

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.”

The contract, called the ‘Next Generation Munitions Solution’ (NGMS), is due to commence in January 2023 and will succeed the current ‘Munitions Acquisition, the Supply Solution’ (MASS) contract, which commenced in 2008. It represents the enduring partnership between BAE Systems and the UK Armed Forces, particularly the British Army.

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