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Babcock International Group has secured a five-year contract extension worth approximately £1 billion (AU$2 billion) with the UK Ministry of Defence, reinforcing its long-term partnership with the British Army.
As a key strategic partner to the UK Ministry of Defence (MOD), Babcock specialises in developing new military vehicles, maintaining the existing fleet, and training soldiers. This contract extension further strengthens the company’s role in ensuring the operational readiness of the British Army.
Over the past decade, Babcock has transformed the original Defence Support Group (DSG) contract and the next five years will see an acceleration of this modernisation, aligning with the UK’s Defence Industrial Strategy to drive economic growth and provide significant value to the MOD.
Babcock’s chief executive officer, David Lockwood, said, “In a period of increased global instability, more is being expected of our armed forces. This contract extension ensures that Babcock continues to provide the British Army with the tools to do its job, when and wherever they are needed. Our know-how, application of technology and extensive experience in the land domain help ensure that the British Army is ready to fight and win wars.”
The extension to the DSG Service Provision and Transformation Contract (SPTC) will continue delivering a comprehensive range of support capabilities for the Army both in the UK and abroad. Babcock will enhance operational readiness through improved asset management, maintenance and supply chain efficiencies, ensuring that critical army equipment remains available and combat-ready.
UK Defence Secretary John Healey MP added, “Tanks, armoured vehicles and kit are the backbone of the British Army. We are taking action to ensure the outstanding servicemen and women of our Armed Forces are properly equipped and ready to respond to ever-changing global threats.”
A significant transformation program will deliver a step-change in military support capabilities, laying the foundation for long-term army modernisation. In collaboration with the MOD, which has committed to further investment in facilities and equipment, Babcock will continue to support its workforce of 1,600 highly skilled personnel across more than 20 sites throughout the UK.
“Supported by the largest sustained increase in defence spending since the Cold War, this substantial investment with Babcock demonstrates how defence is an engine for growth: supporting businesses of all sizes and sustaining more than 1,600 good, well-paid jobs across Britain,” Secretary Healey added.
The company will also invest in skills development and a strong apprenticeship program to cultivate future talent and sustain expertise in defence engineering and logistics.
This contract extension marks another significant milestone for Babcock, ensuring the British Army remains well-equipped and operationally ready in an increasingly complex global security environment.
