Excellent news that BAE Systems has today secured a new batch of orders for the supply of munitions to the UK Ministry of Defence (MOD). Worth £280m and including options to increase the amount of munitions to a value of £400m, these orders will create more than 200 new jobs in the North of England and South Wales, boosting the Company’s 1,200-strong UK munitions workforce.
The BAE Systems statement made important reference to increased conflicts and tensions across the globe and of how these have highlighted the importance of maintaining highly invested sovereign manufacturing capabilities and the enduring partnership that exists between BAE Systems and the UK Armed Forces.
Building on the existing £2.4bn 15-year partnering agreement, the new orders will significantly increase the production of vital defence stocks such as 155mm artillery shells, 30mm medium calibre rounds and 5.56mm ammunition. These are core products which the British Army relies on to deliver maximum effectiveness on the battlefield.
Key investments are already underway to enable the increased manufacturing rate, including:
- An additional 155mm machining line in Washington, Tyne & Wear
- A new explosive filling facility at Glascoed, South Wales
- Re-instatement of the 30mm medium calibre manufacturing capability, at Washington and Glascoed
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 multi-million-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.”
Munitions
The current 15-year contract, between BAE Systems and the UK MOD, called the ‘Next Generation Munitions Solution’ (NGMS), came into effect in January 2023. It succeeded the previous ‘Munitions Acquisition, the Supply Solution’ (MASS) contract.
The Munitions business within BAE Systems, employs 1,260 people who are involved in either munitions manufacturing or test and evaluation at five sites across the UK: Glascoed in Monmouthshire; Radway Green in Cheshire; Washington in Tyne & Wear; Bishopston near Glasgow; and Ridsdale in Northumberland.
Employment opportunities resulting from these contracts include:
- 65 production operatives at Radway Green, Cheshire
- 101 production operatives at Washington, Tyne & Wear
- 45 production operatives at Glascoed, South Wales
Nato Meets To Discuss Defence Spending And Other Issues
Getting close to nine years since the 2014 Nato Summit in Wales and UK Prime Minister, David Cameron, appeared desperate to find something that all members might agree on, what we got was what I have always regarded as been an arbitrary figure that served little purpose.
I recall my mood at the time when I was told inside No 10 by the then Chief Security Advisor of what had been effectively agreed by officials even before the Summit had started.
We well know that not all NATO member states could afford to commit to 2% of their GDP spend on defence.
Today Nato leaders are meeting in Lithuania.
We also know that countries such as France and particularly Germany, although increasing fast, still have a long way to go. And you have to ask yourself, given the domestic political status of Germany, how many countries would be happy to see Germany increase defence spending by say 50%?
And then there is the other matter – one that Britain has used to the full in order to claim that it spends 2% of GDP on Defence – pile other things onto the Defence Budget.
Calls from Prime Ministers and other international NATO member leaders calling for defence spending to rise to 2% of GDP require absolute honesty and integrity that the nation making the call is honourable and doing just that.
And then there is GDP itself. It should go without saying that if the global economy goes into recession then some countries could, in theory at least, suddenly be able to claim that defence spending had become a higher proportion of GDP. Just a thought!
CHW (London – 11th July 2023)
Howard Wheeldon FRAeS
Wheeldon Strategic Advisory Ltd,
M: +44 7710 779785
Skype: chwheeldon
@AirSeaRescue