22 August 2008 | Jake Kanter
The Ministry of Defence (MoD) has signed a £2 billion contract with BAE Systems for the future supply of small arms and ammunition.
The agreement is set to run for 15 years and covers around 80 per cent of the munitions used by British armed forces on operations and in training. The deal includes medium calibre ammunition, mortar bombs and tank, artillery and naval gun shells.
BAE Systems Land Systems Munitions has also increased production due to current "high front-line demand" and plans to invest £102 million in modernising three of its factories.
Bob Ainsworth, minister for armed forces, said in a statement: "The 15-year programme will ensure the UK has a modernised, sustainable munitions industry, which will support British jobs and protect our capacity to produce ammunition."