UK: Firing for the Future - MoD Signs £2bn Ammunition Partnership

UK: Firing for the Future - MoD Signs £2bn Ammunition Partnership (NSI News Source Info) August 22, 2008: A new £2 billion 15-year partnering agreement between the MOD and BAE Systems Land Systems Munitions guaranteeing the future supply of the Armed Forces' small arms and medium calibre ammunition was signed today. The new agreement with BAE Systems LSM covers around 80 per cent of the munitions used by the Armed Forces on operations and training and includes small arms and medium-calibre ammunition, mortar bombs, tank, artillery and naval gun shells but not complex weapons such as guided missiles. Minister for Armed Forces, Bob Ainsworth, said: "Today's partnering agreement secures the long-term supply of ammunitions to our Armed Forces. The fifteen year programme will ensure that the UK has a modernised, sustainable munitions industry which will support British jobs and protect our capacity to produce ammunition. 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." MOD Defence Equipment and Support Director General Weapons, Rear Admiral Amjad Hussain, said: "We are very pleased with this agreement. It demonstrates the way we work with industry and the Armed Forces to ensure we deliver the capabilities the front line needs." BAES LSM has factories at Glascoed, South Wales; Radway Green, Crewe; and Birtley, Co Durham. BACKGROUND NOTES: 1. The MoD has signed a 15-year contractual Partnering Agreement with BAE Systems Land Systems Munitions (BAES LSM), known as MASS - Munitions Acquisition Supply Solution, to support the procurement of general munitions for British armed forces. 2. The Partnering Agreement will help to secure a modernised, munitions manufacturing capability in the UK. With the flexibility and engineering capability required to ensure continuity of munitions supply and operational sovereignty in the future. 3. BAES LSM have factories at Glascoed, South Wales; Radway Green, Crewe; and Birtley, Co Durham. During the current period of high front-line demand, the company has stepped up production and are providing up to one million rounds of small arms ammunition from their manufacturing facility at Radway Green, Crewe. 4. BAES LSM will be undertaking a programme of investment at the three sites: -- Birtley: A £28m investment will focus on new buildings housing a new forge, machining centre, and heat and surface treatment plants for 155 and 105mm artillery ammunition. The modernisation is planned to be completed by 2011. --. Glascoed: A £34m investment will result in new x-ray equipment, a medium-calibre assembly area, insensitive munitions mortar filling plant and new infrastructure such as bulk magazines, an engineering centre for co-location of staff and a new steam generation and distribution system which will be twice as efficient as the existing plant. -- Radway Green: A £40m investment in new buildings and equipment, primarily to increase capacity by 50 per cent. New buildings will be in place in early 2012.