Rheinmetall BAE Systems Land (RBSL) announced on Tuesday that it was awarded an £860 million ($1.1 billion) subcontract for the British Ministry of Defense’s Mechanised Infantry Vehicle program.
As noted by the company, more than 260 Boxer vehicles to be produced in Telford.
The subcontract, worth about £860 million, marks a significant milestone for the program, following the £2.3 billion ($3.8 billion) MIV contract awarded to ARTEC, the Rheinmetall and KMW consortium in December 2019.
The contract will create and sustain over 200 skilled jobs in and around Telford, with the complete programme creating and sustaining more than 1,000 jobs nationally. The award of this contract will allow RBSL to provide work and training opportunities to more than 60 apprentices over the next five years, which is anticipated to be replicated across the UK supply chain.
The MIV programme aims to source 60%, by value, of the contract from within the UK. In order to achieve this, RBSL is part of the MIV Joint Procurement Team, which has engaged with suppliers in England, Wales, Scotland and Northern Ireland. The team has issued over 250 requests for quotations, and RBSL has completed numerous detailed supplier audits.
By working with a vibrant UK supply chain, the MIV programme will help support economic growth and level-up regional economic opportunity. The MIV programme aims to support and enhance the UK supply chain, including SMEs. It will also ensure that the UK has, in country, the skills and expertise to support the vehicles throughout their operational life.
Millions of pounds of investment will be made across British industry in training and capital equipment, increasing productivity throughout the supply chain. RBSL alone is making a £20 million investment in its Telford site to improve infrastructure, provide state-of-the-art manufacturing facilities, and deliver some of the highest standards of training for specialist capabilities, such as welding.