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200 new jobs will be created and hundreds more supported at one of the UK鈥檚 leading defence manufacturers, after a 拢1.6 billion deal was announced by the Prime Minister today to supply thousands of advanced air defence missiles to Ukraine.

The latest measures in the UK鈥檚 support for Ukraine to achieve peace through strength, the deal will also provide a major boost to the UK economy and support 700 existing聽jobs at Thales in Belfast, which will manufacture more than 5,000 lightweight-multirole missiles (LMM) for Ukraine鈥檚 defence. The deal will see production of LMMs at Thales鈥檚 factory treble and will also聽benefit companies in the Thales Supply Chain across the UK 鈥� putting more money in working people鈥檚 pockets.

It is the largest contract ever received聽by Thales in Belfast and the second largest MOD has placed with Thales, building on a previous contract with Thales, signed in September 2024 for 650 missiles. The first batch of missiles were delivered before Christmas, and this new contract will continue deliveries.

The deal comes after the Prime Minister announced聽the Government鈥檚 commitment to increase spending on defence to 2.5% of GDP聽by April 2027 and confirmed an ambition to spend 3% of GDP on defence in the next parliament, in order to keep Britain safe and secure for generations to come. This investment will be an opportunity to translate defence spending into British growth, British jobs, British skills, and British innovation.

The deal helps deliver on the Government鈥檚 pledge in its Plan for Change to improve the lives of people in every corner of the UK by growing the economy. By spending more on defence we will deliver the national security that underpins聽economic growth, and unlock new jobs, skills and opportunities across the country.聽

Prime Minister Keir Starmer said:

My support for Ukraine is unwavering. I am determined to find a way forward that brings an end to Russia鈥檚 illegal war and guarantees Ukraine a lasting peace based on sovereignty and security.

I am also clear that national security is economic security. As well as levelling up Ukraine鈥檚 air defence, this loan will make working people here in the UK better off, boosting our economy and supporting jobs in Northern Ireland and beyond.

By doubling down on our support, working closely with key partners, and ensuring Ukraine has a strong voice at the table, I believe we can achieve a strong, lasting deal that delivers a permanent peace in Ukraine.

Defence Secretary John Healey MP said:

Three years since Putin launched his full-scale invasion, we are now at a critical moment for the future of Ukraine and the security聽of us all in Europe.聽

We all want a secure and lasting peace. As today鈥檚 meeting has showed, the UK will continue to lead international efforts to support Ukraine in securing a ceasefire and durable peace. And we will not jeopardise the peace by forgetting about the war. This new support will help protect Ukraine against drone and missile attacks but it will also help deter further Russian aggression following any end to the fighting.

This new deal delivers on the UK鈥檚 ironclad commitment to step up military support for Ukraine, whilst boosting jobs and growth at home.

鈥婽oday鈥檚 deal marks a historic step for industrial relations between the UK and Ukraine, building on the 100 Year Partnership signed recently by the Prime Minister and President Zelenskyy in Kyiv.聽The contract will enable Ukraine to draw on 拢3.5 billion of export finance to acquire military equipment from UK companies, boosting both the UK鈥檚 and Ukraine鈥檚 defence industrial bases and support investment in further military capabilities.

Ukraine has already put the highly capable LMM missile to use as part of its air defences where it has proven to be incredibly effective in protecting civilians and critical infrastructure from Russia鈥檚 bombardment. A 拢162 million contract announced in September last year saw 650 LMM missiles supplied to Ukraine as an initial order to ramp up production 鈥� deliveries started in December 2024.

Thales Northern Ireland will deliver the contract 鈥� worth an initial 拢1.16 billion with the potential for around a further 拢500 million of work to be added 鈥� in collaboration with a Ukrainian industry partner, which will manufacture launchers and command and control vehicles for the missiles in Ukraine.

The contract has been placed by the MOD鈥檚 procurement arm Defence Equipment & Support on behalf of the Ukrainian Government, to be funded by a loan underwritten by United Kingdom Export Finance (UKEF) after a deal signed last year to allow Ukraine to draw on 拢3.5 billion worth of support from UKEF to spend with UK industry.

As set out in the Plan for Change, national security is the first duty of the Government - and a strong economy is built on the bedrock of strong security. Increased defence spending will support highly skilled jobs and apprenticeships across the whole of the UK. Last year, defence spending supported over 430,000 jobs across the UK, the equivalent to one in every 60, and 68% of defence spending goes outside of London and the Southeast, benefitting every nation and region of the country.

Andy Start, DE&S CEO and UK National Armaments Director said:

The UK鈥檚 Defence Industry has supported Ukraine from the start of the war and this important contract underlines industry鈥檚 ability to scale up production at pace to deliver the world-class defence equipment Ukraine requires.

聽This contract is a critical next step in the work of Task Force HIRST in developing lasting partnerships between the UK and Ukraine鈥檚 defence industries. The substantial increase in LMM production capacity will benefit both Ukraine鈥檚 fight tonight, as well as the longer-term security of the UK.

The deal marks the next milestone in the work of the MOD鈥檚 Taskforce HIRST and the first of a series of 鈥渕ega projects鈥� to be delivered for Ukraine, with the HIRST team working to build long-term relationships with Ukrainian industry to restore and modernise their defence industrial base, support its future defence and economic growth.

Earlier this month, the Defence Secretary announced a new 拢150 million military support package to support Ukrainian troops fighting Russia on the frontline, part of the UK鈥檚 unprecedented 拢3 billion annual pledge to Ukraine.

The UK has committed to spending 拢3 billion next financial year to support Ukraine, with an additional 拢1.5 billion from interest on seized assets through the Extraordinary Revenue Accelerator 鈥� taking the total to 拢4.5 billion. This will ensure Ukraine can achieve peace through strength and underscoring the new 100 Year Partnership between the UK and Ukraine.