The UK defence industry is set for a significant boost as European missile systems manufacturer MBDA announces a £200 million investment at its Bolton site, creating 700 high-skilled jobs.
This major expansion comes just days after the UK and EU signed a new Security and Defence Partnership, which will open access for UK firms to the EU’s proposed £150 billion defence fund. The agreement is expected to drive growth, bolster procurement opportunities, and support over 430,000 defence-related jobs across the UK.
Strategic growth for UK defence sector
The Bolton investment is part of MBDA’s wider £500 million UK expansion plan and marks a strong vote of confidence in the Government’s upcoming modern Industrial Strategy. The strategy aims to attract private investment in high-growth sectors, offering businesses the long-term certainty needed to expand operations.
Business Secretary Jonathan Reynolds will visit the Bolton facility today (22 May) to formally announce the deal. He hailed the move as a "win for our world-class defence sector" that will create "hundreds of good, well-paid jobs" and reinforce the UK’s leadership in advanced manufacturing technologies.
Boost to manufacturing, skills and exports
MBDA’s investment will more than double the size of its Bolton site by 2028 and expand its apprenticeship and STEM outreach programmes, which currently engage over 400 early-career professionals across the UK.
The company aims to achieve £10 billion in UK exports by 2032, further strengthening Britain’s position as a global leader in complex weapons systems. This follows the UK Government’s announcement of a £6.5 billion partnership with MBDA in July 2024 to deliver advanced weapons capability.
Voices from industry and government
Business Secretary Jonathan Reynolds said: “This is great news for Bolton and another win for our world-class defence sector, which will create hundreds of good, well-paid jobs and ensure the UK continues to lead the way on the cutting-edge technologies of the future.
Our new Security and Defence Partnership will unlock access to the EU’s proposed new £150 billion defence fund for UK firms. Coupled with the launch of our upcoming modern Industrial Strategy, communities across the country will see how our Plan for Change is working - delivering growth at home and strength abroad”.
MBDA UK Managing Director Chris Allam said:
“We are proud and excited to be building a world class engineering and manufacturing campus in the north-west of England, the centre of complex weapons manufacturing for the UK, and our associated recruitment and training will extend our already great workforce.
MBDA is privileged to have a 10-year Complex Weapons portfolio agreement with the UK Government. This gives us the confidence to invest and better support the UK and its allies. It also helps our supply chain and over 700 SMEs who work with MBDA in the UK. When we expand, they expand with us”.
Megan, a manufacturing apprentice at MBDA’s Bolton site, said:
“It’s great that our site is expanding and there will be more early-careers opportunities for young people. Becoming an apprentice was an obvious choice for me. Having the chance to learn as part of my full-time job and achieve a recognised qualification and career made it a very easy decision.
Apprenticeships can be unique experience for each person. They provide the chance to excel in industries people are passionate about, and the experiences they get will shape their future. Making the most out of my apprenticeship has led to reward and recognition for my hard work, and I always encourage others to study STEM subjects and do the same”.
UK Export Finance CEO Tim Reid said:
“Pioneering companies like MBDA UK investing in their people and technologies for the long-term underscore why we are a world leader in defence.
Thanks to our multi-billion-pound direct lending uplift, we can support even more defence firms to expand their production lines and take on more international orders from allies – leading to greater economic growth, stronger supply chains and local jobs back here at home”.
In March 2025, the Government announced a £2 billion increase in UKEF’s Direct Lending capacity for defence exports, raising its total lending capability to £10 billion. In 2023 alone, the UK secured defence contracts worth £14.5 billion, reinforcing its status as one of the world’s top defence exporters. Photo by Diliff, Wikimedia commons.