UK Awards £3.7Bn Contract for Type 26 Frigate

Multi-Billion Pound Defence Deal Secures Thousands of UK Jobs

(Source: UK Ministry of Defence; issued July 2, 2017)

BAE Systems’ £3.8 billion contract for the Royal Navy’s first three Type 26 frigates includes no provisions for the two follow-on batches of two and three ships, leading some to question whether the entire 8 now planned will in fact be built. (BAE image)

The Defence Secretary Sir Michael Fallon has announced the signing of a contract worth around £3.7 billion to start building the Royal Navy’s Type 26 Frigates.

Manufacture of the first three of these new highly capable warships will secure approximately 1700 skilled shipbuilding jobs in Scotland and 1700 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.

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 twenty years, and thousands of jobs in the supply chain across Britain.

These world-class warships will protect the nation’s nuclear deterrent and the Royal Navy’s new aircraft carriers, the first of which, HMS Queen Elizabeth, has recently taken to sea for the first time. The ships specialise in anti-submarine warfare, protecting the UK’s overseas territories and interests across the globe. The flexible design will allow the capabilities to be adapted throughout its lifespan to counter future threats.

The deal also reaffirms the commitment made by the Government in the 2015 Strategic Defence and Security Review (SDSR15) to build eight Type 26 ships. The contract for the second batch of five ships is expected to be negotiated in the early 2020s, paving the way to sustain further jobs in Scotland and across the wider supply chain for many years to come. The Type 26 programme will secure the long- term future of the Scottish shipbuilding industry.

Admiral Sir Philip Jones, First Sea Lord and Chief of Naval Staff, said: “For an island nation, dependent on maritime trade, a strong Royal Navy is essential for our national security and economic prosperity. Today there are over 500 submarines in the world operated by 40 navies. As one of the quietest and most potent submarine-hunters of any Navy, the Type 26 will have a crucial role to play to protect the nuclear deterrent and our two new aircraft carriers.

“Although designed to fight and win in the most demanding scenarios, they will also work alongside our international partners to protect and promote the United Kingdom’s interests around the world.

The Type 26 will be the most advanced anti-submarine warfare ship in its class around the world. The MOD is exploring potential export opportunities where there is strong interest from international customers.

The contract is specifically structured to motivate both sides to deliver to a successful outcome where both parties share in the pain and gain in the delivery of the programme. This will deliver better value for money for the UK taxpayer.

The MOD spent £1.5 billion with Scottish businesses last year and supports 9,700 jobs across Scotland. The Royal Navy’s new Queen Elizabeth Carriers are being built in Rosyth and the new Offshore Patrol Vessels are under construction in Govan and Scotstoun ahead of this summer’s Type 26 Frigate steel cut.

(EDITOR’S NOTE: On Twitter, BAE’s Type 26 program director Geoff Searle said July 2 that the £3.7B contract includes the manufacturing phase and long-lead supplier costs from previous phases, but not long-lead items for the next batch.)

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Manufacturing Contract for Type 26 Global Combat Ship Awarded to BAE Systems

(Source: BAE Systems; issued July 2, 2017)

BAE Systems has been awarded a contract by the UK Ministry of Defence worth c£3.7bn to manufacture the first three ships for the Type 26 Global Combat Ship programme, with steel being cut on the first ship in Glasgow in the coming weeks.
This provides a strong foundation for the next two decades of shipbuilding in Scotland, securing more than 3,400 jobs across BAE Systems and the wider UK maritime supply chain.

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 £178bn 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 twenty years, and thousands of jobs in the supply chain across Britain.”

Commenting on this important announcement, Charles Woodburn, Chief Executive, 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 UK Government committed to eight advanced anti-submarine warfare ships in its 2015 Stategic Defence and Security Review (SDSR). The Type 26 programme currently employs more than 1,200 people in the UK supply chain, with a number of contracts already in place for the manufacture of major equipment for the first three ships. In total, there are already 33 UK and international companies working in the supply chain to deliver the Type 26 ships - with further announcements to be made shortly.

The Type 26 Global Combat Ship will be a world-class anti-submarine warfare ship and will replace the anti-submarine variant Type 23 frigates. Globally deployable, it will be capable of undertaking a wide range of roles from high intensity warfare to humanitarian assistance, either operating independently or as part of a task group. The Type 26 will be the most advanced ship in its class around the world and we are exploring potential export opportunities where there is strong interest from international customers.

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UK Awards £3.7Bn Contract for Type 26 Frigate UK Awards £3.7Bn Contract for Type 26 Frigate Reviewed by Defense Alert on 05:10:00 Rating: 5

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