Babcock International has confirmed a £1 billion five-year contract extension with the Ministry of Defence.
If you are investment planning in Oswestry and the wider Shropshire area, the deal will provide a boost for the British armed forces with £600 million for subcontractors.
Local MP Shaun Davies said the move could offer significant economic benefits for Shropshire, with support for over 400 jobs in Telford – an area long associated with the defence industry. One local company set to take advantage is Rheinmetall BAE Systems Land (RBSL), a UK and German joint venture that specialises in design, manufacturing and support.
The contract will guarantee the readiness of military equipment as part of the Government’s drive to bolster national security. It follows the Government’s announcement that it plans to increase defence spending to 2.5% of GDP, amounting to the biggest increase since the end of the Cold War.
Davies added that defence companies such as RBSL provide vital job opportunities and apprenticeships for people in the area in the manufacture of high-tech military machinery, transport and equipment.
The Defence Support Group (DSG) Service Provision and Transformation Contract (SPTC) forms part of the UK’s wider Defence Industrial Strategy. It will combine continued support for Army vehicles with delivery of asset management services and training provision to soldiers at over 20 sites across the country.
Babcock International CEO David Lockwood said the contract extension will ensure the British Army has the tools to do its job, if needed.
