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Military

BAE Systems announces outcome of strategic review

31 Oct 2005

BAE Systems has, since 2004, been reviewing the cost base and industrial footprint of its Land Systems Munitions business in order to develop plans for a long-term sustainable future.

Several options have been reviewed for each site and following detailed analysis and management review it is with regret that today the Company announces the closure of its Bridgwater site and end of manufacturing operations at Chorley, pending consultation with Trades Unions.

Bridgwater
The Bridgwater site was established to manufacture explosives at a far greater annual tonnage than that required to meet the Companys current business plan. The low throughput, high fixed costs and high levels of investment required to sustain this plant have resulted in the operation no longer being economically viable.

As a consequence BAE Systems will be closing its Bridgwater facility by the end of 2007, resulting in the loss of approximately 130 jobs. Every effort is being made to mitigate these job losses and alternative employment options are being investigated for all employees concerned.

Chorley
The BAE Systems Chorley site employs 200 people, of which 70 are involved in manufacturing operations. The other 130 employees are engaged in a variety of engineering and support roles. After careful and detailed review it has been decided to close the manufacturing site by the end of 2006, incurring approximately 70 job losses.

Suitable alternative office accommodation for the remaining Chorley employees undertaking engineering and support roles will be sourced within the local area.

Consultation with employee representatives at both sites will commence immediately and every effort will be made to mitigate job losses.

Steve Rowbotham, managing director Land Systems Munitions said: 'We regret having to reach this decision, and recognise the impact it will have on our employees and the community. We will work very diligently to mitigate the impact of these losses and will ensure the process is handled professionally and sensitively. Additionally, we appreciate all the support given by the local community over the years.

About BAE SYSTEMS

BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs over 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.

For further information, please contact:

Greg Trew, Communications Manager Land Systems
Tel +44 (0)1252 384029
Mobile +44 (0) 7736810269

Kate Roberts, Communications Manager Land Systems External communications
Tel: +44 (0)191 226 70326
Mobile +44 (0) 7771767385



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