British company BAE Systems to open new plant to produce howitzers for Ukraine
British company BAE Systems will open a new £25 million artillery plant in Sheffield to produce howitzers for Ukraine
The Telegraph reports.
According to the report, the plant will start production of towed M777 howitzers next year. This decision is a response to the growing demand caused by the war in Ukraine, where the M777 howitzers are very popular due to their reliability and mobility.
The plant was built by an independent company and leased to BAE, which is now reconstructing it for the production of artillery equipment and securing the plant's territory. This effectively cancels the company's decision to stop producing these guns in the UK in early 2023.
The production of spare parts and landing gear for the M777 has already earned BAE Systems multimillion-dollar contracts, including $50 million from the Pentagon. The company is confident that the new plant will provide economies of scale and create new export opportunities.
According to John Borton, managing director of BAE Systems in the UK, the new plant will support the government's ambitions to restore and expand British artillery capabilities as part of the development of the defense sector as a key sector of the British economy.
"Our goal is to secure a long-term artillery capability for the UK that will protect, support and develop critical British industrial capabilities, as well as provide important export opportunities," he said.
BAE Systems has also signed deals with the government to replenish its ammunition stockpile, including 155mm rounds for the M777, which will require the expansion of another of the company's plants. The company has already received orders worth £25 billion this year.
- In early October, the French-German arms conglomerate KNDS signed a contract for the supply of 12 Caesar self-propelled artillery systems, to be financed by Ukraine.
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