Scotland’s Defence Boom: £1.1 Billion Export Deals and 500 New Jobs Secured by Long-Term UK Investment

Record Export Deals and Job Creation

The UK government’s sustained defence investment in Scotland has enabled Thales UK to secure £1.1 billion in export deals, creating and sustaining over 500 jobs in Glasgow and supporting thousands more across the supply chain. These deals build on Scotland’s reputation as a global leader in defence manufacturing and high-tech innovation.

• Key Export Contracts:
• Partnership with Norway’s Kongsberg to supply thermal cameras and laser rangefinders for armoured fighting vehicles.
• AI-enabled targeting and surveillance system (TrueHunter Gimbal Sight) for the German Armed Forces.
• Systems for the Dreadnought-class submarines and AUKUS submarine programme, reinforcing the UK’s submarine and sonar expertise.
• Economic Impact: Thales’ Glasgow-based optronics business already supports nearly 2,300 jobs and contributes over £140 million to Scotland’s GDP annually.

Scotland’s Defence Growth Deal

The UK government has formally launched Scotland’s Defence Growth Deal, a collaborative initiative to create new opportunities, develop skills, and strengthen Scotland’s defence sector. The deal aims to:

• Boost local manufacturing and innovation.
• Support workforce development, including a new Skills Academy in Glasgow to train the next generation of engineers.
• Enhance global partnerships, ensuring Scotland remains a key player in international defence markets.

Luke Pollard, Minister for Defence Readiness and Industry:

"These deals highlight Scotland as a defence industrial powerhouse—backing jobs and skills for years to come, while helping keep the UK secure."

Douglas Alexander, Scottish Secretary:

"The UK Government is delivering a defence dividend for Scotland. Thales securing more than £1 billion in export orders is the latest in an impressive line of wins for Scotland, boosting order books and securing thousands of jobs at home."

MOD Investment and Industry Support

The Ministry of Defence (MOD) directly spent over £2 billion in Scotland in 2024/25, supporting 11,800 industry jobs and awarding 254 contracts to Scottish businesses. This investment includes:

• £10 billion Norway Type 26 warship deal, the largest warship export contract in British history, supporting over 2,000 jobs in Glasgow alone.
• Long-term commitments to Scottish defence firms, enabling them to compete globally and win high-value contracts.

Phil Siveter, CEO of Thales UK:

"Long-term commitment from government enables Thales to increase its capability in Glasgow, as well as significantly benefiting the local supply chain. We’ve been able to make significant investments in future talent, including a new Skills Academy in Glasgow."

Future Prospects and Skills Development

The Defence Growth Deal and Thales’ Skills Academy will focus on:

• Training the next generation of engineers and technicians.
• Expanding apprenticeship and graduate programmes, with 50 early-career professionals already employed in Glasgow.
• Strengthening Scotland’s position as a hub for defence innovation and export growth.