BAE Systems has been awarded a 15-year ammunitions contract by the Ministry of Defence (MoD) worth £2 billion.
The deal will involve the supply of small arms and medium-calibre ammunition, tank, artillery and naval gun shells and mortar bombs.
Initially set at £2 billion, the total may rise to £3 billion should further ammunition be required.
One thousand seven hundred jobs across the Crewe, Glascoed and Birtley sites have been safeguarded as a result of the contract.
“Today’s partnering agreement secures the long-term supply of ammunitions to our armed forces,” said Armed Forces Minister Bob Ainsworth. “The 15-year programme will ensure that the UK has a modernised, sustainable munitions industry which will support British jobs and protect our capacity to produce ammunition.”