GXO Logistics announced a six‑year contract renewal and expansion with BAE Systems, extending the partnership into its third decade. The agreement adds warehousing and materials‑handling services at BAE’s Scotstoun and Govan shipyards on the River Clyde, and expands inbound and outbound volume management across a network of warehouses in the Central Belt of Scotland.
The renewal follows GXO’s acquisition of Wincanton in April 2024, which broadened its aerospace and defense capabilities. By integrating Wincanton’s expertise, GXO is positioned to support the development of Type 26 frigates for the Royal Navy, providing end‑to‑end logistics and 4PL control‑tower services for defense supply chains.
While the contract’s financial value was not disclosed, the six‑year term is expected to generate recurring revenue and reinforce GXO’s presence in the UK defense market. The expansion underscores GXO’s strategic focus on high‑security logistics for major defense programs.
Gavin Williams, GXO UK & Ireland managing director, said the extension reflects BAE’s confidence in GXO’s solutions and marks a milestone post‑Wincanton acquisition. Jen Blee, BAE manufacturing and facility director, highlighted improved efficiency and support for the Type 26 program.
The deal aligns with BAE’s £4.2 billion contract to build five Type 26 frigates, securing shipbuilding in Scotland into the 2030s. GXO’s expanded capabilities will help BAE streamline supply chains, enhance resilience, and meet the program’s advanced anti‑submarine warfare requirements.
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