European missile house MBDA and the UK Ministry of Defence (MoD) have renewed their strategic partnership on complex weapons for a further decade with a renewed Portfolio Management Agreement (PMA) known as PMA2.
The agreement, which was announced on 22 July 2024 on the first day of the Farnborough International Airshow, is worth at least GBP 6.5 billion (EUR 7.7 billion) and “will deliver battle-winning complex weapons to the UK armed forces faster, at lower cost and with greater agility”, according to MBDA.
The new agreement is intended to drive a further GBP 2 billion in benefits and efficiencies while also enhancing current capabilities. It is anticipated to deliver new systems, such as the Future Cruise and Anti-Ship Weapon (FC/ASW), Land Precision Strike capability and SPEAR Cap 3 air-to-ground missile, as well as to and continue the evolution of current weapons such as the Meteor beyond-visual-range air-to-air missile.
“PMA2 incorporates a decade of learning into the running of the complex weapons portfolio,” MNDA stated in a press release. “It includes a number of measures to enhance performance, including improved commercial agreements, acceleration of procurement processes and enabling ‘always-on’ manufacturing. It will hold industry at a high state of readiness to respond to the demands of Defence.”
“Renewing the MoD-MBDA partnership for a further decade underscores our role as a critical national asset supporting UK Defence,” stated Chris Allam, managing director of MBDA UK, in a company press release. “PMA2 will build upon the many successes of the past decade while delivering enhanced value, speed and agility for the UK armed forces and enabling better collaboration with our allies across Europe.”
While the original PMA secured a strong and innovative British industrial base, providing the UK with the freedom of action to respond to conflicts on its own terms, it also produced confirmed savings of GBP 2.6 billion. With the UK seen as a strong partner, the original PMA also supported international collaborations and saw UK exports grow by 6.5 times.
MBDA has nearly doubled its workforce since 2010 and now has more than 5,500 employees at MBDA UK sites in the northwest, east and southwest of England. The company’s work also supports thousands of further jobs in its UK supply chain.
MBDA noted that the value of the PMA model enabled it to invest over GBP 550 million in the UK, including a new manufacturing site in Bolton, and that PMA2 will see a further GBP 500 million of MBDA investment in UK manufacturing and technologies.
An initial Portfolio Management Agreement (Interim) was signed between MBDA and the MoD in 2010, while an updated Portfolio Management Agreement was signed on 17 July 2013.
