Britain’s BAE Systems has secured an additional order worth £130 million ($162 million) from the UK government to supply munitions to war-torn Ukraine.
The award follows the decision by the MOD to exercise the option to increase the supply contract announced in July from £280m to £410m.
“As the UK continues to back Ukraine’s resistance of Russia’s illegal invasion, it’s vital we ramp up our sovereign munitions production. This contract will further bolster ammunition stockpiles, whilst supporting our defence industry and backing hundreds of highly-skilled UK jobs,” said James Cartlidge, Minister for Defence Procurement.
The full order with Defence Equipment and Support will be supplied via BAE Systems’ facilities in Washington, Tyne and Wear, and Glascoed, South Wales.
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.
The £410 million contract includes provisions for various investments, such as the establishment of an additional 155mm machining line in Washington, Tyne & Wear, the construction of a new explosive filling facility in Glascoed, South Wales, and the reinstatement of 30mm medium calibre manufacturing capability at both the Washington and Glascoed sites.