BAE is now in talks with customers about how to ramp up production of missiles and ammunition as the war in Ukraine has put Eastern European countries on edge. The company supplies a number of ammunition, explosives, gun systems and artillery systems, many of which have been ordered to replace arms supplies sent from Europe to Ukraine as lethal aid.
The company has already reported staggering profits from the war, and as the conflict continues, BAE is now expected to take in even more orders.
In addition to increased demand from the Ministry of Defense, BAE expects more orders from ‘customers around the world’.
BAE Chief executive Dr. Charles Woodburn said discussions with these customers will mean that the company “needs to increase the capacity of a whole range of ammunition”.
It comes after the company reported better-than-expected half-year profits of £1.1 billion, up 8 percent from last year.
BAE also received an increase of £18 billion in orders in the first half of the year, a 70 per cent increase.
Much of that increase was for existing programs like its Dreadnought nuclear ballistic submarines, as well as orders for its typhoon fighter jets.
The company’s shares are also up more than 30 percent since Putin first launched his brutal invasion of Ukraine in mid-February.
BAE’s order book had also risen to £52.7 billion, according to the latest results.
But while BAE benefits from European countries shipping deadly aid to Ukraine as its weapons replace their stockpiles, other customers can also benefit.
Mr Woodburn said: “I think there is more to come. Which, given the very unfortunate events in Ukraine, have brought the heightened threat environment back into the minds of our political leaders.”
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NATO Secretary General Jens Stoltenberg reportedly told the Financial Times that the new military blueprint would give major boost to the eastern defenses.
He said: “I can assure you that for decades we have been able to protect countries bordering Russia by adjusting our presence in light of the threat analysis. We’ve done that before and we’re going to do it again.”
The new plans represent a return to old NATO planning for the prospect of a Soviet invasion.
Since the dissolution of the Soviet Union, the nations on NATO’s eastern front have continued to rely on old Soviet-era weapons.
But now countries like Poland, Hungary, Romania and the Baltic states would eliminate these weapons.
David Lockwood Chief Executive of British defense contractor Babcock, said: “There are Eastern European governments, and I don’t mean Ukraine, who are now buying Western kit that grew up with Warsaw Pact kit, that need help to understand how they support and operate that and that’s the kind of thing we do in the UK.”
And now they can be trained to use more British weapons coming soon. It comes after BAE announced a £500m boost for Eurofighter Typhoon jet sales to Spain.
The Spanish Air Force will purchase 20 new Typhoon fighters, while NATO Eurofighter and Tornado Management Agency (NETMA) signs the contract to purchase the jets. BAE Systems will benefit from the deal through its involvement in the production of multiple components for the Typhoon.
The UK has already given Ukraine £2.3 billion in lethal aid.
Donated weapons included M270 multi-launch missile systems with M31A1 precision ammunition, thousands of next-generation light anti-tank weapons, and hundreds of short-range Brimstone missiles.