MBDA, U.K. MoD Initiate Complex Weapons Portfolio Management Agreement-2

The U.K. Ministry of Defence (MOD) and MBDA have renewed their strategic partnership through the Portfolio Management Agreement-2 (PMA-2), valued at a minimum of £6.5 billion.

This decade-long agreement aims to provide the U.K. Armed Forces with complex weapons more efficiently and at reduced costs, while supporting British jobs, skills, and industrial investment.

PMA-2 projects an additional £2 billion in benefits and efficiencies. The framework is designed to enhance existing capabilities and introduce new systems, including the Future Cruise and Anti-Ship Weapon (FC/ASW), Land Precision Strike, and advancements in the Meteor missile system.

Incorporating lessons from the previous agreement, PMA-2 aims to improve performance through enhanced commercial agreements and streamlined procurement processes. The agreement emphasizes readiness and the ability to quickly meet defense demands.

The original Portfolio Management Agreement established a robust British industrial base and enabled the U.K. to maintain autonomy in military responses, achieving confirmed savings of £2.6 billion. It also supported international collaborations and increased U.K. exports.

MBDA’s investments under the PMA model have totaled over £550 million in the U.K., including a new manufacturing facility in Bolton. With PMA-2, MBDA plans to invest an additional £500 million in British manufacturing and technology development.