The British defence ministry has placed a new order of $24.9 million (£20 million) with BAE Systems for the supply of additional small arms munitions over the next two years, the defence company announced on Tuesday (Nov 14). According to a statement issued by BAE, “The 5.56mm and 7.62mm rounds will be produced at Radway Green, the Company’s state-of-the-art manufacturing facility which offers some of the most advanced ammunition production capabilities in the world.”
This announcement follows the signing of a $512 million order for the supply of vital battlefield munitions to the defence ministry in September when it exercised an option to increase a $349 million supply order announced in July.
Glynn Plant, the managing director of munitions at BAE, said on Tuesday, “The significant orders we have secured throughout the year has seen our teams increasing production rates, investing in people and new facilities and maximising shift patterns to meet this enhanced demand.”
Meanwhile, the UK’s Secretary of State for Defence Grant Shapps said that with contracts like these, the government continues to ensure that the government “replenishes and equips our forces, supporting jobs right across the UK.”
On Tuesday, the company’s shares shed 3.16 per cent to $13.40, on what proved to be an all-around favourable trading session for the stock market, a report by Market Watch said.
And on Monday, the defence giant reported a surge in orders that has led the company to raise its sales growth outlook for the year, a report by investing.com said. BAE saw over $36.68 billion this year, reflecting sustained confidence from its customers, the report added.