The company will provide about 80% of the munitions used by forces, including small arms and medium-caliber weapons such as mortar bombs and tank and artillery shells. “The 15-year program will ensure that the UK has a modernized, sustainable munitions industry which will support British jobs and protect our capacity to produce ammunition,” said Armed Forces Minister Bob Ainsworth. “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.”

The deal will see BAE undertake multi-million pound improvement projects at three factories, in Crewe and Birtley in northern England and Glascoed in south Wales. (Reuters)