BAE wins £1.6bn deal to build Saudi airplanes
BRITISH engineering got a boost yesterday when BAE Systems secured a £1.6bn deal to equip and train the Saudi Arabian military.
BAE said it will supply 22 new Hawk advanced trainer jets, most of which will be made in Britain, as well as 55 Swiss-made Pilatus aircraft and other training and support services.
The contract provides some welcome relief for the British defence giant, which is battling against shrinking European and American defence budgets and fierce competition.
Saudi Arabia’s official news agency SPA quoted an unnamed official at the Saudi defence ministry as saying the Hawks would help train “the Saudi air force to be able to use the fighter jets … efficiently”.
Most of the Hawks will be made at BAE’s plants in Samlesbury and Warton in Lancashire according to BAE’s statement yesterday. The planes are not due to be delivered until 2016.
Yesterday’s deal is the second big contract win for BAE in as many days – it also bagged a £328m deal to supply Britain’s next generation of submarines.
Shares in BAE closed down one per cent at 271.5p, outperforming a broader fall in the FTSE 100.