Defence Contractor to Relocate Manufacturing from Cambridge to Wales
A defence contractor has announced plans to relocate its manufacturing operations over 200 miles from Cambridge to Wales, putting 158 jobs at risk.
Marshall Land Systems revealed its intention to complete the move to Merthyr Tydfil in south Wales by 31 March 2027.
The company was sold by the Marshall Group, originally founded in Cambridge in 1909, to Canadian investment firm Flowing River Capital Partners in November 2025.
The relocation is intended to reduce costs and ensure longer-term sustainability, according to the company’s statement to the BBC.
The Welsh government expressed support for the move, stating it demonstrated that Wales is "an attractive location for investment."
The proposed changes would affect 158 employees and 59 fixed-term agency contractors.
A consultation period commenced following the announcement on Thursday.
Reduce Costs
A spokesman for Marshall Land Systems stated:
"We can confirm that Marshall Land Systems has announced a proposal to relocate its UK production facility to Merthyr Tydfil in South Wales, with a phased transition beginning in summer 2026."
The company added that manufacturing in Cambridge would continue to operate alongside the new site until December.
Marshall Land Systems indicated it had actively sought suitable, cost-effective premises within the local Cambridge area but was unable to find an option that would allow the business to operate efficiently and sustainably.
The move to South Wales is expected to significantly reduce operating costs, including rent and business rates, thereby enhancing the business’s future sustainability.
"We recognise this will be a difficult time for those affected, and we are committed to supporting our people throughout the consultation process and beyond.
We do not expect any impact on customers or service levels during this period," the company added.
In 2019, the Marshall Group announced plans to leave Cambridge Airport, where Marshall Land Systems is still based, with plans for thousands of homes to be constructed on the site.
The group sold land for the Marleigh estate, developed in partnership with The Hill Group, and owns approximately 460 acres (186 hectares) at Cambridge Airport.
Last month, the Marshall Group disclosed it was considering selling the remainder of the business, including Marshall Aerospace.
The Welsh government commented:
"We welcome the decision by Marshall, subject to staff consultation, to move their manufacturing operation to Merthyr Tydfil.
This shows Wales is an attractive location for investment and this new government is determined and focused to bring many more jobs here."
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