Tuesday, November 5, 2024

UK secures £6.5 billion complex weapons deal with MBDA

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The Ministry of Defence (MOD) has announced a substantial £6.5 billion investment to enhance the rapid delivery of advanced complex weapons, such as the Storm Shadow, Brimstone, and Meteor missiles, to the Armed Forces.

This investment, formalised through the 10-year Portfolio Management Agreement 2 (PMA2) with MBDA, aims to counter current and future, according to the company.

This agreement extends a strategic partnership between the MOD and MBDA that began in 2010. The Complex Weapons Team at Defence Equipment & Support (DE&S), the MOD’s procurement arm, secured this deal, which has already resulted in approximately £2.6 billion in savings and enhanced the UK’s response capabilities during conflicts.

According to a statement:

“The partnership with MBDA, signed with Defence Equipment & Support (DE&S), the MoD’s procurement arms, is expected to deliver new systems to the UK such as the Future Cruise and Anti-Ship Weapon, Land Precision Strike and continue the evolution of Meteor missile system. It will enable ‘always-on’ manufacturing, holding industry at a high-state of readiness to respond to defence demands. As part of this partnership, a further £500 million will be invested in British manufacturing and technologies.”

The deal aims to sustain over 5,500 jobs at MBDA UK sites in Bolton, Lancashire; Stevenage, Hertfordshire; and Bristol, alongside thousands more in the supply chain.

The newly appointed Defence Secretary, John Healey, announced the contract at the Farnborough International Air Show. Healey emphasised the importance of continuity in national security efforts: “Farnborough International Air Show showcases the best of British industry and how a vibrant industrial base keeps us all safe and contributes to UK economic growth. As Defence Secretary, I want to take the politics out of national security so where there is important work begun under the previous government, we will take it forward in the interest of national security.”

The Ministry of Defence say that MBDA has been instrumental in producing various complex weapons systems for the British Army, Royal Navy, and RAF.

These include the Storm Shadow, Brimstone, Meteor, ASRAAM, ASTER (Sea Viper), CAMM (Land/Sea Ceptor), and Sea Venom missiles. Future projects include the SPEAR Cap 3 for the F-35B Lightning II and a UK-French collaboration on the Future Cruise/Anti-Ship Weapons (FC/ASW) for the Royal Navy and RAF.

Andy Start, CEO of DE&S, underscored the significance of the renewed partnership: “Renewing this partnership for a further 10 years means we can deliver battle-winning equipment to our Armed Forces, while securing thousands of UK jobs and delivering significant savings to the taxpayer. It is an excellent example of the value and importance of long-term strategic collaboration with our industry partners.”

MBDA has invested more than £550 million in the UK under the original PMA and plans an additional £500 million investment in British manufacturing and technologies under PMA2.

John Cunningham, Head of Complex Weapons, Strategic Programmes, noted the broader implications of the agreement: “This represents significant investment from MOD and supports our vision to deliver strategic influence for the UK, munition resilience, and battle-winning capability at pace, fit for the future. We are excited to enter a new phase of our complex weapons partnership with MBDA.”

According to the MOD, the PMA2 agreement incorporates a decade of learning, enhancing performance through improved commercial agreements, accelerated procurement processes, and continuous manufacturing readiness.

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