BAE Systems has secured new orders from the UK to boost production of munitions as western governments seek to alleviate a global shortage that is hampering Ukraine’s fight against Russia.
The £280mn agreement, which could increase in value to more than £400mn, will enable Britain’s biggest defence contractor to raise its production capacity of key 155mm artillery shells eight-fold.
The 155mm ammunition is the standard for most Nato howitzers — long-range artillery launchers — including America’s M777 and France’s Caesar, both of which have been sent to Ukraine. The sheer scale of demand for ammunition and explosives from Ukrainian armed forces has depleted western government stockpiles and turned into a test of Europe’s industrial production capacity.