UK Govt Unveils New Boeing Defense Purchases, Aerospace R&D Partnership Pacts

Boeing P-8A PoseidonThe U.K. government and Boeing (NYSE:BA) have announced a set of defense-related pacts that cover sales of maritime patrol aircraft and attack helicopters to the country’s military, added research-and-development spending and initiatives to create new aerospace jobs in Britain.

In a series of statements Monday, the U.K.’s defense ministry said it will purchase nine P-8A Poseidon maritime surveillance planes for its air force and 50 Apache AH-64E helicopters for its army under two foreign military sales agreements with the U.S. government worth $6.2 billion combined.

Boeing has also agreed to make the U.K. the company’s main hub for training, maintenance, repair and overhaul services in Europe for fixed-wing and rotary aircraft with Britain also chosen as a main base for defense exports to European and Middle Eastern countries.

The U.K. and Boeing announced the defense sales and export agreements almost two weeks after the country voted in a national referendum to exit the European Union within the next two years.

Boeing and the British defense ministry have also formed a new aerospace R&D partnership with close to $519.1 million in combined investments that are intended to add 2, 000 new jobs in the U.K. and create new bid opportunities and competitiveness initiatives for suppliers in the country.

Of that $519.1 million, $129.7 million will go toward a new Poseidon operational support and training base at a British air force base in Lossiemouth, Scotland that will add 100 new jobs there.

The remaining $389.4 million is set aside for aerospace R&D projects jointly funded by industry and government.

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