BAE Systems PLC (LSE:BA.) has been awarded a £656mln contract extension from The Ministry of Defence to work on its Tempest fighter jet, in the latest sign that the UK is pushing forward with the aim of producing the aircraft by 2035.
The funding will build on the research and engineering completed in the first phase of the contract already delivered by the UK Tempest partners, which also include jet engine maker, Rolls-Royce Holdings PLC (LSE:RR.), Leonardo UK and MBDA UK.
The aircraft is designed to be an innovative stealth fighter with supersonic capability and equipped with cutting-edge technologies, including state-of-the-art sensing and protection capabilities.
“This contract reflects the continued commitment by the UK government and ensures we continue to mature this significant programme and the vital technology pipeline that will drive innovation into — and beyond — the combat air sector for decades to come,” Herman Claesen, managing director of future combat air systems at BAE Systems, said.
The next tranche of funding for future combat air will help fuse the combined technologies and expertise we have with our international partners – both in Europe and the Pacific - to deliver this world-leading fighter jet by 2035, protecting our skies for decades to come,” Ben Wallace, UK Secretary of State for Defence commented.
BAE pointed there are already more than 2,800 people working at the UK partners and wider industry, with almost 600 organisations on the contract, including SMEs and academic institutions.