Partner Article

BAE loses out to US firm

The fears of hundreds of BAE workers on Tyneside were realised yesterday after the firm lost out to an American company on a £4bn deal

BAE was beaten by US defence firm General Dynamics in the race to land a contract to manufacture the new light tank for the British army.

Around 500 jobs will now be lost nationally at BAE and the decision – which had been largely expected – could be a major blow to BAE’s Newcastle plant on Scotswood Road where the tanks were earmarked to be built.

General Dynamics claims that the contract will safeguard or create 10,500 jobs in the UK.

Earlier this month BAE entered a revised bid for the armoured vehicle contract with a promise to create and protect 800 jobs in Newcastle.

“The programme is British to its bootstraps, delivering a military off-the-shelf vehicle with British design by British engineers to the British Army,” said Sandy Wilson, president and managing director of General Dynamics.

Welsh secretary Peter Hain said the deal would see 200 new jobs created at the company’s plant in Newbridge, south Wales.

A further 250 existing jobs will also be safeguarded at the plant, he said.

The new light tank is designed to replace the Scimitar scout vehicle, providing troops with more protection and firepower.

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