The UK government will spend £1.5 billion on at least six new factories to manufacture missiles, artillery shells and military-grade explosives, according to details released ahead of Monday’s Strategic Defence Review (SDR). Defence Secretary John Healey said the sites will “transform the depth and speed of our munitions supply,” creating about 1,800 jobs and supporting production of up to 7,000 long-range weapons.
Where and what will be built?
Officials did not name precise locations, but the Ministry of Defence (MoD) said two plants will focus on energetics—the specialist chemicals that power rocket motors and artillery shells—while four will assemble missiles, guided rockets and drones. BAE Systems and Thales are expected to lead consortia bidding for the work, with construction slated to start in early 2026 and first deliveries in 2028.
Lessons from Ukraine, eyes on Russia
The review cites the war in Ukraine, which has consumed Western stockpiles at a rate not seen since the 1950s, as evidence that Britain lacks surge capacity for “high-tempo, high-attrition warfare.” Healey said the new domestic plants will “end our reliance on trans-Atlantic supply chains for critical precision weapons” and deter “an increasingly assertive Russia.”
No immediate budget boost—but spending pledge remains
The £1.5 bn will be drawn from funds already set aside in last year’s Spring Budget. Prime Minister Keir Starmer confirmed the government is still aiming to raise defence spending to 2.5 percent of GDP by 2027, with a “pathway” to 3 percent in the next parliament, but Friday’s announcement contained no new top-line spending.
Political and industry reaction
- Conservative defence spokesperson James Cartlidge welcomed the investment but warned that without fresh money “the army will still shrink and kit will still age.”
- Trade union Unite hailed the job creation but demanded guarantees on pay and training standards.
- Analysts at RUSI called the move “a significant step toward war-stock resilience,” noting that the UK currently imports the bulk of the solid propellant used in its Brimstone and CAMM missiles.
Next steps
- The SDR will be tabled in Parliament on 3 June.
- The MoD will issue an invitation to tender for the factory programme by late July, with contract awards expected early 2026.
- A parallel £1.5 bn package to refurbish military housing will be detailed in the same review.
For the first time since the Cold War, Britain is preparing to rebuild a domestic munitions base sized for prolonged conflict—an industrial bet that global security threats may outlast the current headlines from Ukraine and Gaza.