Investment in Scottish defence industry helps secure export deals
Image courtesy Thales
Hundreds of Scottish jobs are being created as the UK Government’s long-term commitment to defence investment in Scotland is helping secure deals with international partners.
The certainty of the government’s dedication to Scotland has paved the way for £1.1 billion in inward investment with defence firm Thales, securing significant export deals that will create and sustain over 500 jobs in Glasgow over the next five years.
Thales’ UK optronics business, headquartered in Glasgow, is already a key contributor to Scotland’s economy, supporting nearly 2,300 jobs in total across its supply chain and contributing over £140 million to GDP.
The latest export successes, built on the company’s expertise in advanced imaging, sensors and communication systems, demonstrate that Scottish-based defence industry competes and wins work at the highest level.
The export deals include:
- A partnership with Norway’s Kongsberg to supply thermal cameras and laser rangefinders into their remote weapon stations for armoured fighting vehicle.
- The development and integration of the AI-enabled targeting and surveillance solution, TrueHunter Gimbal Sight, for the German Armed Forces.
- Design and delivery of systems for the first Dreadnought class submarine and main sonar design authority and integrator part of AUKUS and Royal Navy Submarine support and export.
These Scottish exports successes follow the £10 billion Norway Type 26 deal secured by the Government last year - the biggest warship export deal in British history - which supports over 2,000 jobs in Glasgow alone.
Minister for Defence Readiness and Industry, Luke Pollard MP said: "These deals highlight Scotland as a defence industrial powerhouse – backing jobs and skills for years into the future, all while helping keep the UK secure.
"Our long-term investment in Scotland is winning work on the global stage for outstanding industry firms such as Thales, delivering for our Armed Forces and making defence an engine for growth."
Scottish Secretary Douglas Alexander said: "The UK Government is delivering a defence dividend for Scotland. Thales securing more than £1 billion in export orders - creating and sustaining 500 jobs in Glasgow and thousands more in the supply chain is the latest in an impressive line of wins for Scotland.
"Through record funding, the UK Government is transforming our defence sector into an even more powerful engine for growth. Scottish expertise is beating competition from countries all over the world, boosting order books, securing thousands of jobs at home for years to come and strengthening partnerships abroad.
"By backing Scottish industry and our service personnel, we are delivering skilled jobs and growth for communities while keeping us and our allies secure."
Thales currently has 18 graduate apprentices, 13 modern apprentices and 19 graduates, totalling 50 for their early careers cohort in Glasgow.
Phil Siveter (above), CEO, Thales in the UK, said: "Long term commitment from government enables Thales to increase its capability in Glasgow, as well as significantly benefiting the local supply chain. With these commitments, Thales has been able to make significant investments in future talent, as well as a new Skills Academy, located in Glasgow, to support the learning and development of the next generation of engineers."
On Thursday last week, Minister for Defence Readiness and Industry, Luke Pollard MP and Scottish Secretary Douglas Alexander formally launched Scotland’s Defence Growth Deal – collaborative work which will create new opportunities and develop the skills needed to further strengthen Scotland’s position as a global leader in defence manufacturing.
The MoD directly spent more than £2 billion in Scotland in 2024/25, directly supporting 11,800 industry jobs and placing 254 contracts with Scottish businesses.
Developing British Army's MSHORAD capabilities
Thales in the UK has signed a contract with the UK Ministry of Defence (MoD) for the Mounted Short Range Air Defence (MSHORAD) Assessment Phase to enhance the work already underway in the programme. This contract supports the next phase of development for future MSHORAD capabilities and modernisation of the British Army’s ground-based air defence suite.
The contract was signed with Defence Equipment and Support (DE&S) and represents a significant step forward for the UK MoD towards replacing the current UK Stormer High Velocity Missile Self-Propelled (HVM SP) system which represents the current MSHORAD capability for the British Army.
The Stormer HVM SP system, featuring Thales’ StarStreak missile, entered service with the British Army in the 1990s to counter threats from pop-up helicopters and fixed wing aircraft. The capability has been proven over many decades and is testimony to Thales’ technology and design. The UK MoD is now looking to replace the system in line with current battlefield requirements before the end of 2028.
