New defence and security cluster launched to boost Welsh industry

Daniel Bevan - Editor

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A new industry group aimed at strengthening Wales’ growing defence sector has been launched, bringing together businesses, universities and colleges to access new opportunities in the market.

The Wales Regional Defence and Security Cluster was formally launched on 9 March and will connect organisations ranging from small firms to global contractors in a bid to strengthen supply chains, develop new technologies and create skilled jobs.

Wales’s combined defence and aerospace sector currently employs around 16,000 people, with a turnover of £3.7bn and contributing about £1.5bn in gross value added (GVA) to the Welsh economy.

The launch follows the signing of the Wales Defence Growth Deal Memorandum of Understanding, which allocates £50m to Wales from a £250m UK-wide investment programme focused on regional defence growth.

The new cluster aims to help businesses, particularly smaller firms, access Ministry of Defence contracts and strengthen their supply chains.

The industry-led group will be chaired by representatives from Airbus Defence and Space and Thales, with support from the Welsh Government and the Ministry of Defence.

It will also link businesses with Wales’ eight universities and further education colleges, which carry out research in areas including cyber security, opto-electronics and artificial intelligence.

Rebecca Evans, Cabinet Secretary for Economy, said: “Wales is already home to eight of the world’s top ten global defence companies.

“As defence spending increases across the UK, this cluster will bring businesses, universities and government together to create good jobs, strong supply chains and lasting economic growth.”

Secretary of State for Wales Jo Stevens said: “In an increasingly uncertain world Wales’s vital role in the defence of the United Kingdom is becoming ever more important.

“With the signing of the Defence Growth Deal and the establishment of the Defence and Security Cluster we are ensuring that Wales is best placed to contribute to the UK’s national security, as well as our economic growth.”

Minister for Defence Readiness and Industry, Luke Pollard MP said: “Wales is central to the defence of the UK.

“This cluster will help see Welsh businesses of all sizes lead the way in the technologies that will define our security for decades to come.

“By making defence an engine for growth, we are creating skilled opportunities while securing our future together.”