Missile deal secures thousands of jobs: MoD

THE Ministry of Defence has agreed a 10-year deal with missile manufacturer MBDA in a move it says will support thousands of jobs in Bristol, Bolton and Stevenage.

The planned £6.5bn portfolio investment agreement, which was secured by the complex weapons team at Defence Equipment & Support (DE&S) – the MoD’s procurement arm – is for 10 years.

The deal sees the renewal of a partnership between the two organisations for the design, development and production of weapons that started in 2010. It presents a “significant opportunity” to counter current and future threats, the MoD said.

The Portfolio Management Agreement 2 (PMA2) will support more than 5,500 people who work at MBDA UK sites in Bolton, Lancashire; Stevenage, Herfordshire; and Bristol, as well as thousands of further jobs in its UK’s supply chain.

The contract was announced by the newly appointed defence secretary, John Healey, at Farnborough International Air Show.

Mr Healey said: “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. That is why we are renewing important partnerships with industry and continuing to push technological boundaries. This will drive prosperity and create skilled jobs across the country.”

MBDA already produces complex weapons for the British Army, Royal Navy and RAF.

Future programmes MBDA is developing include SPEAR Cap 3, which will be a future weapon for F-35B Lightning II fighter jets and the UK-French collaboration to develop future cruise anti-ship weapons for the RN and RAF.

Andy Start, DE&S chief executive, said: “Renewing this partnership for a further 10 years means we can deliver battlewinning equipment to our Armed Forces, while securing thousands of UK jobs and delivering significant savings to the taxpayer.”

The value of the PMA model has enabled MBDA to invest more than £550m in the UK. PMA2 will see a further £500m of MBDA investment in British manufacturing and technologies.

John Cunningham, head complex weapons, strategic programmes, added: “Events in the last two years have reinforced the need for the UK to maintain strategic choice and resilience, and this deal underpins its ability to maintain both national resilience and its role internationally, being responsive to changing threats and being a leader in complex weapon technologies.”