Shares of BAE Systems plc (LON: BA) today surged higher after the company announced that it had won a government contract worth £2.4bn to supply the UK’s armed forces with munitions that could protect 4,000 British jobs.
BAE Systems is the UK’s largest defence company, and the new 15-year contract will help unlock a £70 million investment in its manufacturing facilities and £350 million in contracts across its UK supply chain.
The company employs 1,260 people within its five UK munitions manufacturing, and testing facilities and the contract will keep them employed. At the same time, its numerous suppliers will maintain the remaining number of jobs.
Jeremy Quinn, the UK’s Defence Minister, said: “Defence underpins hundreds of thousands of jobs across all four corners of the nation, and ongoing investment is crucial as we work together to build back better and stronger from the COVID-19 pandemic.”
Charles Woodburn, BAE Systems’ CEO, explained: “This contract secures the future of a highly technical and critical industry which supports thousands of manufacturing jobs in several areas throughout the UK.”
Adding: “By investing in new technology and skills to further develop our expertise, we can continue to deliver essential sovereign capability to the Armed Forces at competitive prices.”
BAE Systems share price
BAE Systems share price surged 2.22% today to trade at 515.4p having rallied from Friday’s closing price of 504.2p.