This new 15-year contractual partnering agreement with BAE Systems Land Systems Munitions (BAES LSM) is being called MASS – Munitions Acquisition Supply Solution.
It covers around 80 per cent of the munitions that the Armed Forces use on operations and training (the majority is actually used for training), including small arms and medium-calibre ammunition, mortar bombs, tank, artillery and naval gun shells. It does not include 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."
"Having confidence in the supply of ammunition is crucial to operational success and the safety of our Armed Forces. The task for industry to meet the high demands we place on them is very challenging and due to the tempo of operations we've seen a significant increase in the use of ammunition over the last few years."
Colonel David Collins, Defence General Munitions Integrated Project Team Leader
BAES LSM has factories at Glascoed, South Wales; Radway Green, Crewe; and Birtley, Co Durham. During the last few years of high front-line demand, the company has stepped up production of small arms munitions by 300 per cent and are providing up to one million rounds of ammunition a day from their manufacturing facility at Radway Green.
Colonel David Collins, Defence General Munitions Integrated Project Team Leader, said:
"Having confidence in the supply of ammunition is crucial to operational success and the safety of our Armed Forces. The task for industry to meet the high demands we place on them is very challenging and due to the tempo of operations we've seen a significant increase in the use of ammunition over the last few years.
"The considerable efforts of industry and their achievement in responding to increasing demands over the years has contributed to the success of operations in Iraq and Afghanistan."
The long term nature of the partnership agreement with BAE Systems is allowing the company to undertake a programme of investment to modernise its three sites. Some of the equipment they currently use dates from the Second World War. Around 1,700 jobs will also be sustained by the contract.
At 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.
At 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.
And at Radway Green, a £40m investment in new buildings and equipment will be made, primarily to increase capacity by 50 per cent. New buildings will be in place in early 2012.
BAES LSM's Managing Director David Allott said:
"MASS takes our munitions business from rationalisation and consolidation to modernisation and growth. The forward order book allows us to take a long term strategic view."
BAE bought Royal Ordnance, who owned most of the factories that made explosives and ammunition for the British Armed Forces in 1987.