Britain's MoD inks £500m missile deal

The new supersonic missile defense system known as “Sea Ceptor” will be built for the Royal Navy and will be able to intercept and destroy enemy missiles within a 500-mile radius, over land or sea, British media reported.

According to the MoD, the Sea Ceptor will be designed to bring down multiple targets simultaneously, flying at speeds of up to Mach 3. The system will initially be deployed on frigates to replace the Sea Wolf air-defense system, when it goes out of service in 2016, and could later be adapted for use by the army and the RAF.

The contract has been awarded to the firm MBDA, a multinational group with more than 10,000 employees in the UK, France, Italy, Germany and United States.

"The introduction of this missile system will not only ensure that the Royal Navy will be able to continue protecting our interests wherever they may be, but is also highly significant in sustaining and developing the UK's skill in building complex weapons", said Peter Luff, minister for defense equipment, support and technology.

The signing of the deal comes as General Sir Peter Wall, the Chief of the General Staff, has said redundancies were starting to bite across the armed forces. He also raised concerns that the quality of military accommodation was “not up to standard”.