BAE in £2bn MoD ammunition deal

BAE Systems has signed a 15-year deal with the Ministry of Defence (MoD) to supply the UK armed forces with small arms and medium-calibre ammunition.

It also includes mortar bombs, tank, artillery and naval gun shells, but not weapons such as guided missiles.

The contract safeguards 1,700 jobs at factories in Crewe, Glascoed in South Wales and Birtley in County Durham.

MoD officials said the deal, initially worth about £2bn, ensured frontline forces had a secure supply of bullets.

The MoD said the contract could rise to a total of £3bn, depending on how much ammunition was ordered, and covers about 80% of the munitions used on operations and training.