A newly constructed, $129 million munitions factory has been transferred to BAE Systems UK by the builders, the company announced.

The new building, on the site of the existing Radway Green plant in Cheshire, will have 50 percent greater capacity than the existing factory and will be more energy efficient.

BAE said 114 machines are being purchased or refurbished for the facility, which will be fully operational in 2013.

The modernization of the Radway Green site is part of a $321.8 million drive to overhaul Britain's three major World War II vintage munitions plants owned by BAE Systems.

The investment comes from a 15-year, $3 billion partnering agreement -- Munitions Acquisition -- the Supply Solution -- signed in 2008 by the Britain's Ministry of Defense and BAE.

"The secret behind the success of MASS is partnering," said Charlie Blakemore, managing director of BAE Systems Global Combat Systems. "By working closely together we are becoming more efficient. We are also rolling out the principles to key suppliers to streamline production still more."

MASS guarantees the Ministry of Defense ceiling prices for 10 years and includes incentives to make savings, which will be shared between the Defense Ministry and BAE Systems.

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