Belfast Missile Factory Lands Historic £1.6bn Deal with Ukraine

The Thales missile factory in Belfast has secured a landmark contract to supply 5,000 lightweight multirole missiles (LMMs) to Ukraine, as announced by Prime Minister Sir Keir Starmer. The deal, valued up to £1.6 billion, will see an expansion in the workforce with the addition of 200 new staff members. Thales, a prominent arms manufacturer based in France, has been instrumental in supplying air defense capabilities, as Ukrainian forces are already employing these missiles on the battlefield.

This new order emphasizes the United Kingdom's commitment to assist Ukraine amidst ongoing conflict. In September of last year, a preliminary contract worth £162 million was agreed upon for the delivery of 650 LMMs, which initiated Thales's production ramp-up. The current contract is not only substantially larger at an initial value of approximately £1.16 billion but also includes the potential for an extra £500 million in collaborative work with a Ukrainian industry partner responsible for producing missile launchers and command systems in Ukraine itself.

This unprecedented contract represents the most substantial order ever received by the Thales plant in Belfast, according to the UK Ministry of Defence. Defence Secretary John Healey highlighted that this deal is crucial for enhancing Ukraine’s defenses against drone and missile threats, aiming to deter any future Russian aggression, particularly in the event of a peace settlement.

The funding for this deal will be made possible through a loan backed by United Kingdom Export Finance (UKEF), following a prior agreement allowing Ukraine to access £3.5 billion in support for investments with UK industry.

Belfast, War in Ukraine, UK defence spending, Northern Ireland, Ministry of Defence, Ukraine