Thales Belfast awarded £1.16bn to produce missiles for Ukraine

Thales Northern Ireland has been awarded an initial £1.16bn to manufacture over 5,000 lightweight-multirole missiles (LMM) for Ukraine’s armed forces.

Thales Northern Ireland will deliver the contract – worth an initial £1.16bn with the potential for around a further £500m of work to be added
Thales Northern Ireland will deliver the contract – worth an initial £1.16bn with the potential for around a further £500m of work to be added - AdobeStock

The deal will see production of LMMs at Thales’s Belfast factory treble, creating 200 new jobs and supporting hundreds more.

Thales Northern Ireland will deliver the contract in collaboration with a Ukrainian industry partner, which will manufacture launchers and command and control vehicles for the missiles in Ukraine.

The deal follows the prime minister’s announcement on February 26, 2025 that defence spending will increase to 2.5 per cent of GDP by April 2027.

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’s 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’s 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.”

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Ukraine has already put the LMM missile to use as part of its air defences. A £162m contract announced in September 2024 saw 650 LMM missiles supplied to Ukraine as an initial order to ramp up production.

The latest contract has been placed by the MoD’s 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 £3.5bn worth of support from UKEF to spend with UK industry.

Earlier this month, the defence secretary announced a new £150m military support package to support Ukrainian troops fighting Russia on the frontline.

The UK has committed to spending £3bn in the next financial year to support Ukraine, with an additional £1.5bn from interest on seized assets through the Extraordinary Revenue Accelerator.