Battle-winning complex weapons for UK Armed Forces secured for another decade

Published 22 July 2024

The UK will be able to deliver battle-winning complex weapons to the Armed Forces faster thanks to a £6.5 billion planned investment in UK industry by the MOD.

The 10-year Portfolio Management Agreement 2 (PMA2) with MBDA represents the renewal of a long-term strategic relationship through which weapon systems design, development, production and support will be conducted. It presents a significant opportunity to counter current and future threats, providing military capability choice to the UK and Europe.

The agreement, secured by the Complex Weapons Team at Defence Equipment & Support – the MOD’s procurement arm – is a continuation and enhancement of a strategic partnership with MBDA that started in 2010. It has enabled the UK to respond to conflicts on its own terms whilst also creating savings of around £2.6 billion.

It 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 appointment Defence Secretary, John Healey.

Mr Healey said:

“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.

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. In recent years, it has delivered, or is missile systems including Storm Shadow, Brimstone, Meteor, ASRAAM, ASTER (Sea Viper), CAMM (Land/Sea Ceptor) and Sea Venom.

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 (FC/ASW) for the Royal Navy and RAF.

Andy Start, DE&S CEO, said:

“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.”

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

John Cunningham, Head Complex Weapons, Strategic Programmes, said:

“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.”

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.