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MoD signs £2bn BAE partnership
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21/08/2008
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A new £2 billion 15-year partnering agreement between the MOD and BAE Systems, guaranteeing the future supply of the Armed Forces' small arms and medium calibre ammunition was signed today (21 August).
The new agreement covers around 80 per cent of the munitions used by the Armed Forces on operations and training and includes small arms and medium-calibre ammunition, mortar bombs, tank, artillery and naval gun shells but not complex weapons such as guided missiles.
Minister for Armed Forces, Bob Ainsworth, said: "Today's partnering agreement secures the long-term supply of ammunitions to our Armed Forces. The fifteen year programme will ensure that the UK has a modernised, sustainable munitions industry which will support British jobs and protect our capacity to produce ammunition. It is absolutely essential to the conduct of operations and training that we have a guaranteed UK-based high-quality source of ammunition. This contract provides precisely that."
BAES LSM has factories at Glascoed, South Wales; Radway Green, Crewe; and Birtley, Co Durham.
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Author
Ken Hurst
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