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Spend new defence billions in Wales, companies say

Huw Thomas
Business correspondent, BBC Wales News
BBC An Ajax armoured vehicle in black, grey and white camouflage. A union flag, in greyscale, is painted on the front of the vehicle.BBC
More than 100 Ajax armoured vehicles have been produced in Merthyr Tydfil so far

Some of the UK's increased billions in military spending should be targeted at the industry in Wales, defence companies have said.

The UK government has promised to increase defence spending from 2.3% to 2.5% of national income by 2027 in order to prepare the country for "war-fighting readiness".

General Dynamics, which employs more than 700 people at its armoured vehicle plant in Merthyr Tydfil, said more investment would allow it to develop new models and tap into the export market.

Specialist military engineers Llanelec, in Neath, will open an academy to train more staff as demand for skilled workers is expected to increase.

"I think Wales absolutely stands on its own two feet when it comes to defence capability," said Scott Milne, vice-president of General Dynamics Land Systems UK.

He said the "south Wales corridor" of defence companies meant the new Ajax armoured vehicle had been developed with munitions supplied by BAE Glascoed in Usk, Monmouthshire, and with running gears and wheel parts from Neath.

A bald man in a navy suit and white open-collared shirt smiles at the camera, he stands in front of a green armoured vehicle on a concrete surface.
Scott Milne says General Dynamics is part of a "unique capability" for defence manufacturing in south Wales

Mr Milne said the production process showed "we can manufacture vehicles and also sustain them for the long term" in south Wales.

"It is quite a unique capability that we have here," he said.

The Ajax armoured vehicle, which experienced expensive setbacks and delays, has undergone all military testing and is due to be deployed by the Army later this year.

More than 100 out of 589 vehicles have been produced at the Merthyr Tydfil site so far.

Having the Ajax contract grew the team from 10 staff to a workforce of 710, with the majority coming from local communities.

General Dynamics A green armoured vehicle is emerging between two large flags either side - a Welsh dragon on the left and a union flag on the right.General Dynamics
Following significant delays the Ajax armoured vehicle is due to be deployed later this year

"I really want to find every way to sustain that workforce, the highly paid jobs and skills to this region, because this region has contributed so much to the programme of Ajax, but also to the British Army," Mr Milne said.

General Dynamics has two sites in south Wales, with Merthyr Tydfil's armoured vehicles using communications equipment developed at Oakdale in Caerphilly county.

It was identified in this week's strategic defence review as a key Welsh component of the UK defence sector.

A dark-haired man in a navy crew-neck tshirt stands to the right of an armoured vehicle
Cameron Purcell is the second generation of his family to work at General Dynamics in Merthyr Tydfil

Cameron Purcell, 18, has followed his father to work at General Dynamics in his hometown.

"Since it was local, I thought it would be the best option out of a lot of apprenticeships around here," he said.

As a manufacturing engineer apprentice, Mr Purcell has experienced office life and has worked on the vehicle production line.

"It's very important for all of Britain, for the Army especially.

"These are essential vehicles, and the company needs a lot of hands to get them out as quick as possible."

A blonde haired women wearing a black fleece stands in front of an armoured vehicle
Apprentice engineer Marley Crumb spent six months working on the Ajax vehicle's turrets

Fellow apprentice Marley Crumb said she had "always wanted to work within engineering" and the work was "very hands on" as she learned about each variant of the Ajax vehicle.

"For around six months I worked on the turrets, which are on the Ajax.

"It was exactly what I wanted to do, to be able to understand each vehicle and variant, so it would help me in the future," she said.

'We can't spend enough'

The Welsh government said the defence industry spent almost £1bn in Wales every year.

There are about 285 Welsh defence companies, mostly in the supply chain, while eight of the world's largest defence companies have a presence in Wales.

"With what's going on in the world at this point in time, we can't spend enough," said Spencer John, managing director of Llanelec.

His precision engineering company supplies all of the parts required for the running gear on armoured vehicles, including the wheels and axles.

"When you look at what's happening in Tata Steel with the loss of jobs, we have an opportunity in this area," he said.

A man in glasses, a navy suit and a blue striped tie stands on a concrete surface. In the distance behind his shoulder is an armoured vehicle.
The managing director of Llanelec says "with what's going on in the world at this point in time, we can't spend enough"

Both General Dynamics and Llanelec "could bring hundreds of jobs to this area over the next two to three years" if government defence contracts were agreed, he said.

"That's only good for the families within the area. And we are a deprived area in Neath [and] Merthyr Tydfil. We need jobs," Mr John said. "The opportunity is huge."

Wales' Economy Minister Rebecca Evans said she was "really keen to impress upon UK government ministers the opportunity we already have in Wales" and said she would work with businesses to try and secure investment.

She said Wales' defence sector was "really varied" and included cyber security expertise and products such as military telescopes which were increasingly important to manufacturers.