Pure-play contract logistics provider GXO Logistics (NYSE:GXO) has renewed and expanded a contract in the UK with BAE Systems – a provider of advanced, technology-led defence, aerospace, and security solutions.
The six-year agreement will usher the partnership into its third decade and further support BAE Systems in the development of Type 26 frigates – global combat ships.
GXO will provide warehousing solutions and materials handling at BAE Systems’ Scotstoun and Govan shipyards on the River Clyde in Glasgow, Scotland. Additionally, inbound to manufacturing and outbound volumes will be managed across an estate of warehousing facilities in the Central Belt of Scotland.
Support for inbound and outbound transport operations will be coordinated via GXO’s 4PL Control Tower for defence supply chains, and integrated technology solutions will provide enhanced visibility and coordination of inventory movements.
Critical minerals are essential in modern defence technologies, due to enhancing the performance, durability, and efficiency of surveillance, targeting, navigation, and weapon systems.
According to SFA Oxford, the geopolitics of critical minerals is increasingly shaping global security, supply chains, and military capabilities. For example, the Ukraine war intensified geopolitical tensions, with Russia control over key raw materials affecting supply chains while the US and its allies worked to secure alternative sources and reduce dependency on adversarial nations.
Meanwhile, China dominates rare earths production and refining – controlling over 60% of global rare earths supply and more than 85% of processing capacity.
BAE Systems manufacturing and facility director Jen Blee says the agreement with GXO helps the company to continue improving efficiency of the supply chain and shipbuilding operations as it delivers Type 26 frigates for the Royal Navy.
“Working closely with GXO gives us the flexibility and resilience needed to support this important program,” Blee says.
GXO has provided logistics solutions for global aerospace and defence organisations for more than two decades. The company has more than 150,000 team members across more than 1,000 facilities totalling more than 200 million square-feet.
Write to Aaliyah Rogan at Mining.com.au
Images: GXO
