BAE Systems wins £2.4bn munitions contract

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

This 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.

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.

BAE Systems www.baesystems.com