More than 100 new North East jobs are being created at BAE Systems after the defence specialist sealed a huge £280m deal with the Ministry of Defence.
The MoD deal is for the supply of munitions, with the company saying current conflicts and tensions around the globe have thrown a spotlight on UK manufacturing capabilities, as well as its long-running partnership with the UK Armed Forces. The contract – which could increase to more than £400m – is set to create 101 production operative roles at the firm’s site at Washington, Tyne and Wear, as well as 65 jobs at Radway Green, Cheshire, and a further 45 at Glascoed, South Wales.
BAE Systems said the new roles significantly boost its existing munitions business, which has 1,260 people involved in either munitions manufacturing or test and evaluation at five sites across the UK, at Glascoed, Radway Green, Washington, Bishopton near Glasgow, and Ridsdale in Northumberland. The new deal comes in addition to its existing £2.4bn 15-year partnering agreement, and will significantly increase the production of defence stocks including 155mm artillery shells, 30mm medium calibre rounds and 5.56mm ammunition.
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Investments are now under way to help the business ramp up its manufacturing rate, including the creation of an additional 155mm machining line in Washington. Investments are also being made at Glascoed, where a new explosive filling facility is being installed, as well as the re-instatement of 30mm medium calibre manufacturing capability at the North East and South Wales facilities.
Charles Woodburn, chief executive at BAE Systems, said: “We’re incredibly proud of our role in delivering equipment to protect our armed forces and as the UK Ministry of Defence’s long-term strategic partner for munitions supply, we’re actively mobilising our operations in support of our NATO allies.
“This multimillion-pound investment will enable us to significantly ramp up production and sustain vital sovereign capability to deliver cutting-edge munitions, whilst creating and sustaining highly-skilled jobs across the UK.”
Ben Wallace, Secretary of State for Defence, added: “The production of 155mm shells is a demonstration of our commitment to invest in our Armed Forces and sovereign manufacturing capabilities. This is good news for the Army and British jobs, creating hundreds of highly skilled jobs in the North of England and Wales, and ensuring our military can deliver maximum effect on the battlefield.”