LONDON (AP) -- BAE Systems PLC said Monday that it has been awarded a 369.5 million pound ($613 million) contract to maintain and develop torpedoes for the British military.
The 10-year contract will provide support for the Royal Navy and Royal Air Force's Spearfish and Sting Ray torpedoes, the company said in a statement.
About 120 skilled jobs will be supported by the contract. A third of the contract value will go to subcontractors.
BAE will partner with the Ministry of Defense's equipment and support unit, consolidating 11 separate contracts into one. BAE said the structure will provide cost savings of at least 65 million pounds ($108 million).
Spearfish are submarine-launched torpedoes which are deployed in the Swiftsure, Vanguard and Trafalgar subs. Sting Ray anti-submarine torpedoes are carried aboard Royal Navy ships and in the Royal Air Force's Nimrod aircraft.
