Telford's role in defence 'powerhouse' praised by minister - with video and pictures
Telford today received praise from a senior Government official for its role in supporting the UK's Armed Forces following the merger of two defence companies.
Defence Minister Stuart Andrew said the merger of German firm Rheinmetall and Telford-based BAE Systems Land UK will form a new "powerhouse" in the UK military vehicle sector.
The partnership will see the companies combine their market-leading specialisms to compete on a global scale in designing, building and supporting military vehicles.
Mr Andrew said it will sustain about 450 jobs and preserve key technology and engineering skills in the West Midlands.
He was speaking at the official launch of the the venture yesterday, which will be known as Rheinmetall BAE Systems Land (RBSL) and headquartered at the BAE Systems site in Hadley Park.
Mr Andrew said: "What we are seeing today is the birth of a new powerhouse for UK-based military vehicle design, manufacturing and support.
"It is a clear vote of confidence, not just for the workforce here in Telford, but also for West Midlands manufacturing. It is delivering the equipment our army needs who work so hard to keep our country safe.
"The new venture supports vital jobs and skills, and builds on the highly skilled workforce the region has had for decades, safeguarding more than 400 jobs here in Telford.
"It is a prime example of how the defence sector is benefitting every regional economy in the UK and showcasing the best of British engineering on an international stage."
During his visit the minister was shown around the site in Telford, which is well-known for the British Army's Challenger 2 battle tank.
He also met with senior figures and apprentices to see first-hand how they are going to support the UK's Armed Forces.
"I am hugely impressed with the facilities I have seen here already and have heard so much about the fantastic workforce we have here," he said.
"You are contributing hugely to UK capability, giving the British Army cutting edge technology and equipment to give them the winning edge on the battlefield."
Mr Andrew was also given the chance to ride in the Boxer armoured vehicle along the site's test track.
"A lot of my colleagues think I have one of the coolest jobs in Government and today's experience shows that. This is a great vehicle and it is good to see the capability it has. There is a big export potential for the Boxer," he added.
Town will be key to our defence future
The joint venture between UK defence company BAE Systems and German firm Rheinmetall will sustain about 450 jobs across the UK – many of which are based in Telford.
The new venture is intended to play a major role in manufacturing the Boxer 8x8 – and eight-wheel drive armoured car – for the British Army’s Mechanised Infantry Vehicle (MIV) programme.
It will also support other significant combat vehicle programmes, as well as the British Army’s in-service bridging and armoured vehicle fleets.
Hadley Park has long played a key role in the maintenance, repair, and upgrading of the Army’s fleet of tanks, and the bridging operation is to ensure that soldiers can deploy temporary bridges in the field when they need to cross obstacles like rivers or ravines.
Defence Minister Stuart Andrew said: “It was fantastic to visit the Telford site and meet with all those involved in the historic partnership including the current crop of apprentices who will continue to manufacture pioneering British land equipment long into the future.”
Defence Secretary Penny Mordaunt also welcomed the new venture.
She added: “This announcement is a clear vote of confidence in the UK’s defence industry as a world-leader in designing, supplying and supporting military vehicles.
“This exciting venture clearly demonstrates how defence sits at the heart of the prosperity agenda.
“Its benefits will be felt in the West Midlands and across the UK defence supply chain, creating jobs, boosting exports and guaranteeing our technical skills base into the future.”
RBSL will draw on Rheinmetall’s broader military vehicle technologies combined with the additional capabilities and systems brought to the joint venture by BAE Systems’ Land UK business, such as Trojan, Terrier, Warrior, military bridging and the AS90 self-propelled artillery system.
RBSL will have the potential to create hundreds of additional UK jobs, both in Telford and the wider supply chain.
Chief of Material (Land) for Defence, Equipment and Support, Lieutenant General Paul Jaques said: “We have enjoyed a strong working relationship with BAE Systems Land UK and Rheinmetall individually and this new collaborative way of working will only strengthen this relationship.
“The shared expertise both these companies bring to defence can only be of a benefit to our customers as we will continue to develop and deliver world class, battle-winning capabilities to the front line.”
Peter Hardisty, formerly of Rheinmetall UK, has been appointed as managing director of the new combined company.
He said: “RBSL is a new business drawing on the significant strengths and expertise of both BAE Systems Land UK and Rheinmetall.
“Our employees in Telford, Bristol, and Washington (UK) have a valuable skill set and extensive experience in combat vehicle engineering.
“With new orders, we shall be able to sustain these capabilities and expand over the coming years, seeking new opportunities in the UK and overseas.”
The new management team that will lead RBSL into the future also includes Carrie White as finance director and Phil Simon as operations director, both of whom join from BAE Systems.
Regulatory approval for the joint venture was granted on June 13 by the UK Competition and Markets Authority.
The announcement is the latest boost in defence’s contribution to the economy of the West Midlands.
The MOD invested £1.5 billion with industry in the Midlands last year, equating to about £150 per resident and sustaining almost 12,000 jobs across the region.
The MOD is also playing a central role in the cross-Government Midlands Engine initiative.
The Midlands Engine Investment Fund has already invested £25 million into over 100 small and medium enterprises in the Midlands to start and grow.
The UK defence industry already contributes £7 billion in exports to UK GDP, with this announcement set to boost the development, production and export of military combat vehicles from the UK.
