£453m Typhoon radar contract opens a decade of work for Edinburgh, Lancashire and Luton
Lead Story
DE&S has awarded BAE Systems, Leonardo UK and Parker Meggitt a £453.5 million contract to manufacture 40 ECRS Mk2 active electronically scanned array radars for RAF Typhoons. The award, announced by Defence Secretary John Healey during a visit to Leonardo's Edinburgh facility on 22 January, sustains 1,300 jobs across the UK over ten years: 300 in Edinburgh, 120 in Lancashire, and 100 in Luton. The radars will be fitted to Tranche 3 aircraft and deliver advanced electronic warfare capability, including high-powered jamming. For suppliers, this production contract follows successful prototype flight trials and signals a transition from development to series manufacturing - prime subcontracting opportunities will emerge as the integration programme ramps up.
Policy & Government
Ajax Programme Boss Removed as Minister Pauses Initial Operating Capability
Defence Minister Luke Pollard confirmed on 22 January that he has removed Chris Bowbrick, the Senior Responsible Owner for the Ajax programme, after discovering that ministerial submissions had not reflected the full breadth of known vibration-related risks. Pollard said he was "angry" that he had been told the vehicle was "demonstrably safe" before 35 soldiers fell ill during a Salisbury Plain exercise in November. Ajax's Initial Operating Capability, declared just weeks earlier, has been paused pending three separate investigations. Of the 35 soldiers treated for injuries, 25 have returned to duty, two had unrelated injuries, and eight remain medically downgraded. Trials are expected to resume, but the programme's future remains under review. For the supply chain around General Dynamics' Merthyr Tydfil facility, this introduces renewed uncertainty about programme continuation.
Defence Committee Demands Answers on Harland & Wolff Administration - The Defence Committee published a letter to Defence Secretary John Healey on 22 January seeking clarity on Harland & Wolff's intention to file for administration. Committee Chair Tan Dhesi stressed that "a thriving shipbuilding sector is vital to the UK economy and the Government's growth plans." The letter poses questions about the Navantia UK acquisition approval process, impact on the Fleet Solid Support programme and HMS Quorn regeneration for Lithuania, and the suspended M55 project. The Committee requested responses by 3 February. For companies in the FSS supply chain, the letter signals parliamentary pressure for government transparency on shipbuilding continuity.
Contracts & Awards
QinetiQ Secures £205m Typhoon Engineering Support Extension
QinetiQ has been awarded a five-year contract extension worth £205 million to continue providing engineering services for the RAF Typhoon fleet. The Engineering Delivery Partnership contract covers technical support, modification embodiment and engineering advice, extending work QinetiQ has delivered since 2017. This incumbency renewal demonstrates the long-term support revenue available to established Typhoon suppliers.
EuroTrophy Signs €330m Contract for Leopard 2A8 Active Protection Systems - Announced at the International Armoured Vehicles conference on 20 January, EuroTrophy signed a €330 million (£276m) contract with KNDS Deutschland to supply Trophy active protection systems for Leopard 2A8 programmes in Croatia, Czech Republic, the Netherlands and Lithuania. The contract includes spares, training packages and through-life support. While not a UK contract, the deal illustrates the scale of European armoured vehicle modernisation spending and potential interoperability requirements with UK forces.
Industry Moves
Babcock CEO David Lockwood to Retire; Nuclear Chief Harry Holt Named Successor
Babcock International announced on 23 January that CEO David Lockwood will retire by the end of 2026, with Harry Holt, currently CEO of the company's Nuclear division, appointed as his successor. Holt will become Deputy CEO and join the board in June before assuming the top role. Lockwood led a five-year turnaround that saw Babcock's share price rise nearly 600%, coinciding with increased defence spending following Russia's invasion of Ukraine. Holt has overseen a 54% revenue increase in the Nuclear sector between FY23 and FY25, achieving 9% margins. The company confirmed it remains confident of meeting FY26 margin targets of 8%, with potential upside depending on timing of a £4 billion Indonesian maritime deal. For BD teams working with Babcock, leadership continuity through Holt's nuclear background signals sustained focus on submarine support and naval programmes.
Procurement Pipeline
Challenger 3 Completes First Crewed Live Firing: Programme Progresses Toward Capability
The British Army's Challenger 3 main battle tank completed its first crewed live firing trials on UK soil on 20 January, marking the first UK firing of a newly developed main battle tank in more than 30 years. Rheinmetall BAE Systems Land (RBSL) conducted the trials, which followed a phased programme beginning with remote operation before progressing to crewed firing. The 120mm smoothbore L55A1 cannon fires the latest kinetic energy anti-tank rounds. Additional crewed firing and initial reliability growth trials are planned for later this year. The programme has attracted £40 million inward investment in RBSL's Telford facility and utilises a UK-based SME supply chain.
International Armoured Vehicles Conference Draws 1,500 Delegates to Farnborough - The 26th International Armoured Vehicles Conference took place at Farnborough from 20-22 January, attracting over 1,500 delegates from more than 60 nations. More than 500 British Army and MOD personnel registered for the event, which is officially supported by the British Army and National Armaments Group. Key themes included fleet readiness, supply chain resilience, and integration of autonomous systems. General Dynamics displayed a turreted mortar variant of Ajax featuring the Patria NEMO system, while Oshkosh showcased its Joint Light Tactical Vehicle. The conference provided a forum for engagement with programme managers and acquisition officials across European land platforms.
International
UK's Role in Common Armoured Vehicle System Highlighted at IAV 2026
Finland's Patria exhibited its 6x6 vehicle at IAV 2026, highlighting the UK's participation in the multinational Common Armoured Vehicle System (CAVS) programme alongside Finland, Latvia, Sweden, Germany, Denmark and Norway. Patria has received orders for almost 1,000 vehicles across the programme and has delivered more than 220. For UK suppliers interested in the wheeled armoured vehicle space, CAVS represents an ongoing multinational opportunity with standardised requirements across seven nations.
Coming Up
- -Ajax programme investigations continue; further ministerial updates expected
- -Defence Secretary response to Defence Committee on Harland & Wolff due 3 February
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