MoD hands manufacturing contract to BAE Systems

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BAE Systems has been awarded a £3.7 billion contract from the Ministry of Defence (MoD) to manufacture the first three ships for the Type 26 Global Combat Ship programme.

The MoD said that manufacture of the first three warships will secure approximately 1,700 skilled shipbuilding jobs in Scotland and 1,700 jobs throughout the supply chain across Britain until 2035.

Defence secretary Sir Michael Fallon said: “The Type 26 Frigate is a cutting-edge warship, combining the expertise of the British shipbuilding industry with the excellence of the Royal Navy. We will cut steel on the first ship later this month – a hugely significant milestone that delivers on our commitment to maintain our global naval power. These ships will be a force to be reckoned with, there to protect our powerful new carriers and helping keep British interests safe across the world.

“Backed by a rising defence budget and a £178 billionn Equipment Plan, the Type 26 programme will bring vast economic benefits to Scotland and the wider UK. The contract is structured to ensure value for taxpayers’ money and, importantly, now designed to protect them from extra bills from project overrun. The investment will secure hundreds of skilled jobs at BAE Systems on the Clyde for the next 20 years, and thousands of jobs in the supply chain across Britain.”

The UK government committed to eight advanced anti-submarine warfare ships in its 2015 Strategic Defence and Security Review (SDSR). The contract for the second batch of five ships is expected to be negotiated in the early 2020s.

Charles Woodburn, chief executive of BAE Systems, said: “The award of this contract is a strong endorsement of the talent and commitment of our employees across the UK and reinforces Glasgow as the centre of shipbuilding in the UK. We are extremely proud to be chosen to design and manufacture vessels that will give the Royal Navy an essential, next generation capability and be a vital addition to its fleet.

“We will continue to invest in our technologies, productivity and people to help us deliver these ships to the highest standards. Today we have five River Class Offshore Patrol vessels at varying stages of construction for the Royal Navy across our shipyards in Glasgow and we look forward to starting manufacture on the first Type 26 ship in the coming weeks.”

The announcement has also been welcomed by union GMB.

Ross Murdoch, GMB national officer and interim CSEU chair, said: “It is fantastic news that the defence secretary has finally confirmed and signed the contract for the first batch of Type 26 Frigates.

“Whilst we understand that it was always going to be announced in batches we look forward to future confirmation on the other five ships.

“It is a particularly significant announcement in terms of the timing given the Queen Elizabeth Carrier going out from Rosyth last week to commence sea trials, as it once again reinforces the world class reputation of our UK shipyard workers.

“This is tremendous news for GMB members in Scotland in particular, but also in the wider context of the supply chain across the UK.”