200 new jobs will be created and hundreds more supported at one of the UK’s leading defence manufacturers, after a £1.6 billion deal was announced by the Prime Minister to supply thousands of advanced air defence missiles to Ukraine.
The latest measures in the UK’s support for Ukraine to achieve peace through strength, the deal will also provide a major boost to the UK economy and support 700 existing jobs at Thales in Belfast, which will manufacture more than 5,000 lightweight-multirole missiles (LMM) for Ukraine’s defence.
The deal will see production of LMMs at Thales’s factory treble and will also benefit companies in the Thales Supply Chain across the UK – putting more money in working people’s pockets. It is the largest contract ever received by Thales in Belfast and the second largest MOD has placed with Thales, building on a previous contract with Thales, signed in September 2024 for 650 missiles.
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The first batch of missiles were delivered before Christmas, and this new contract will continue deliveries.
The deal comes after the Prime Minister announced the Government’s commitment to increase spending on defence to 2.5% of GDP by April 2027 and confirmed an ambition to spend 3% of GDP on defence in the next parliament, in order to keep Britain safe and secure for generations to come. This investment will be an opportunity to translate defence spending into British growth, British jobs, British skills, and British innovation.
The deal helps deliver on the Government’s pledge in its Plan for Change to improve the lives of people in every corner of the UK by growing the economy. By spending more on defence we will deliver the national security that underpins economic growth, and unlock new jobs, skills and opportunities across the country.
Prime Minister Keir Starmer said:
“My support for Ukraine is unwavering. I am determined to find a way forward that brings an end to Russia’s illegal war and guarantees Ukraine a lasting peace based on sovereignty and security.
“I am also clear that national security is economic security. As well as levelling up Ukraine’s air defence, this loan will make working people here in the UK better off, boosting our economy and supporting jobs in Northern Ireland and beyond.
“By doubling down on our support, working closely with key partners, and ensuring Ukraine has a strong voice at the table, I believe we can achieve a strong, lasting deal that delivers a permanent peace in Ukraine.”
