Partner Article

BAE calls for Government u-turn

Manufacturer BAE Systems yesterday put forward a last ditch proposal to save a multi-billion-pound contract that would support 800 jobs on Tyneside.

The defence contractor said it would reverse 400 planned redundancies and create a further 400 jobs at its Newcastle site on Scotswood Road, if the Government awarded it the contract to build the ‘Scout’ armoured vehicles.

According to press speculation, the government is ready to award the contract to the UK arm of U.rival General Dynamics Corp.

BAE had initially planned to complete the contract in Sweden and at another UK site.

However, it yesterday told the MoD it could shift the production work to Newcastle.

The company, which announced 500 redundancies last year, said they would be forced to make further cuts if they lost out on the contract.

This was posted in Bdaily's Members' News section by Ruth Mitchell .