On the first day of the Farnborough 2024 international aerospace show, MBDA and the UK Ministry of Defense announced the renewal of their strategic partnership in complex weaponry for another decade through a renewed Portfolio Management Agreement (PMA). Known as PMA2 and valued at least £6.5 billion (just over USD 8.39 billion), the agreement will enable the delivery of state-of-the-art complex weaponry to the British Armed Forces faster, at lower cost and with greater agility.
The PMA is a strategic agreement between MBDA and the UK Ministry of Defense that establishes a long-term collaborative framework for the development, production and support of complex weaponry for the British Armed Forces, enabling this weaponry to be delivered more quickly and cost-effectively.
Eric Beranger, CEO of MBDA, said: “PMA2 underlines the excellent work done by our colleagues to innovatively support the UK, acting as both a key sovereign national champion and as a conduit for international co-operation across our group and worldwide.”
Chris Allam, Managing Director of MBDA UK, said: “Renewing the MOD-MBDA partnership for a further decade underscores our role as a critical national asset supporting UK Defence. PMA2 will build upon the many successes of the past decade while delivering enhanced value, speed and agility for the UK Armed Forces and enabling better collaboration with our allies across Europe.”
The new agreement confirms MBDA as the MOD’s preferred supplier of complex weapons. Its framework will drive a further £2 billion in benefits and efficiencies while enhancing current capabilities. The new agreement also is anticipated to deliver new systems such as the Future Cruise and Anti-Ship Weapon (FC/ASW), Land Precision Strike and continue the evolution of Meteor.
See also: Italy seeks to join Franco-British FC/ASW new generation cruise and anti-ship missile program
PMA2 incorporates a decade of learning in managing the complex armaments portfolio. It includes a number of measures to improve performance, such as enhanced commercial arrangements, accelerated acquisition processes and “always-on” manufacturing. It will keep the industry in a high state of readiness to respond to Defense demands.
As reported by MBDA, the original PMA produced confirmed savings of £2.6 billion. Seeing the UK as a strong partner, the original PMA also supported international collaborations and saw UK exports grow 6.5 times.
Today, more than 5,500 people work at MBDA UK facilities in the northwest, east and southwest of England. Nearly doubling the workforce since 2010. MBDA’s work also supports thousands of additional jobs in its UK supply chain ecosystem. The value of the PMA model has enabled MBDA to invest over £550 million in the UK, including a new manufacturing facility in Bolton. PMA2 will see a further £500 million investment by MBDA in UK manufacturing and technologies.
