Defence giants BAE Systems awarded £280m by Ministry of Defence to supplement munitions amid Ukraine war

Defence giant BAE Systems has been given £280m by the Ministry of Defence (MoD) – securing new orders for munitions. The move comes as western governments increase their defence supplies for Ukrainian to combat the Russian invasion.

The British government told Reuters: ‘Most Nato armies use this as standard, and a new 190 million-pound ($244.42 million) BAE Systems contract – possible thanks to our defence spending uplift – will lead to the production of vastly more artillery shells for use by the UK and other allied forces.’

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Prime minister Rishi Sunak is expected to announce what the government calls an eight-fold increase in the production capacity of 155mm artillery ammunition, his office said. The announcement is expected to take place at today’s Nato summit in Vilnius, Lithuania.

The new deal is expected to create over 200 jobs in the North of England and South Wales. There is also an option to increase the order to more than £400m. Charles Woodburn, BAE Systems chief executive. said the contract would enable the company to ‘significantly ramp up production and sustain vital sovereign capability to deliver cutting-edge munitions.’

Ben Wallace, secretary of state for defence, said: ‘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.’