British defence giants prepare to ramp up production as Europe races to re-arm on Trump's Ukraine intervention

BAE, Babcock and Leonardo UK say they have seen a surge in demand

By JESSICA CLARK

Updated: 10:08 EDT, 9 March 2025

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British defence giants are preparing to move production to a war footing as European governments race to re-arm.

The country's biggest arms manufacturers, including BAE Systems, Babcock, Leonardo UK and Chemring, have said they stand ready to meet an 'unparalleled' surge in demand.

The UK, along with Continental nations, is urgently trying to ramp up its independent defence capability in the wake of President Trump's intervention in Russia's war on Ukraine.

Measures could include running production lines 24 hours a day, bringing workers in over the weekend and investing in expansion – even setting up so-called shadow factories last seen in the Second World War.

Hampshire-based Chemring, which has rebuffed a takeover approach from US private equity firm Bain Capital – wants to expand in the UK and Germany.

The company, which makes bombs and missile defence systems, said it has seen 'unparalleled demand' since the invasion of Ukraine, particularly in its explosives division. It expects the surge to last for at least a decade.

> Defence shares rocket as Europe vows to boost military

Show of strength: The UK, along with Continental nations, is urgently trying to ramp up its defence capability in the wake of Donald Trump's intervention in Russia's war on Ukraine

Leonardo, one of the leading aerospace companies in the UK, makes helicopters for the army.

The Italian-owned business said it stands ready to run production lines at its nine UK sites 24 hours a day if need be.

'There's always the ability to add shifts and bring workers in over weekends,' Leonardo UK's chief executive Clive Higgins told The Mail on Sunday.

'Machines that might be running 12 out of 24 hours – we can ramp that up to 24 hours.'

A spokesperson for Babcock, which makes ships for the Royal Navy as well as armoured vehicles, said that as 'a sovereign British company, Babcock is working very hard to make sure our Armed Forces have the equipment and services they need to protect our nation, both now and in the future.'

The Prime Minister has promised to increase military spending from 2.3 to 2.5 per cent of gross domestic product – a measure of national output – by 2027, and to 3 per cent by the next Parliament.

He said Europe must do the 'heavy lifting' in defending Ukraine as he announced a £1.6 billion deal to supply the embattled nation with more than 5,000 missiles. They will be made by French giant Thales in Belfast, creating 200 jobs.

Companies are on standby awaiting further detail from the Government about what armaments are needed.

BAE Systems boss Charles Woodburn said his firm, which is the biggest defence company in Europe, had 'been scaling up in recent years and is ready to scale up again'.

Defence spending 'must revive UK manufacturing': Government is urged to buy British in military push

'We are confident that, given clear demand signals, we can meet the requirement,' he told The Mail on Sunday.

But he called for more guidance from Government, saying 'it will take some time' to fulfil requirements.

Shares in defence companies have soared as investors expect them to profit from the increased demand for arms.

Andrew Kinniburgh, who leads manufacturing group Make UK's defence arm, echoed those sentiments, saying: 'Above all, what UK defence firms require to prepare for increases in demand are firm orders from the Ministry of Defence.'

He added Ministers should fund shadow factories to allow orders to be produced quickly.

These were devised in 1935 in preparation for the Second World War. The then government set up and funded weapons-making sites at car plants, using existing skilled staff to ramp up the rapid production of armaments and planes.

Labour must rely on military Keynesianism

America's bounce back from the Great Depression is often attributed to Franklin D Roosevelt's job-creating New Deal, writes Alex Brummer.

In fact it was driven by arms production under the $50 billion Lend-Lease scheme ($672 billion in today's money) agreed between the president and Winston Churchill.

Now, with the US threatening to downgrade its commitment to Nato, Europe has little choice but to dig deep and build more weaponry to keep the Russian bear at bay.

This means Labour relying on military Keynesianism – raising defence spending to boost economic expansion.

Britain has a head start thanks to the prowess of BAE Systems and Rolls-Royce in aircraft technology, avionics, drones, and cyber security.

It also has the scientific and research brain power to help.

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