Manticore
RETIRED MOD
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BAE Systems has agreed an £859m contract with the Government that pushes forward the development of a new class of warship for the Royal Navy.
The company has signed a demonstration contract that will provide funding to begin ordering major parts for the new Type 26 Global Combat ships.
Under the deal, which moves the programme from development towards the early stages of manufacturing, BAE will begin investing in systems for the first three vessels in the class, which require long lead times to build, such as gas turbines engines, diesel generators and steering gear. It will also begin work on on shore testing facilities for the ships.
The Type 26s are intended to be built as one for one replacements for the Navy’s current Type 23 frigates, meaning that 13 of the new ships could be brought into service, where they will make up the core of the fleet.
BAE gets £859m boost for Navy's new Type 26 frigates - Telegraph
BAE will build the new ships at its Glasgow shipyards, and the contract will support 600 jobs there as well as a further 1,000 positions throughout the UK within the defence company itself and its supply chain.
Ian King, BAE chief executive, said: “We have a long and proud heritage of delivering complex warships in the UK and this announcement is a significant endorsement of the Government’s commitment to sustain this important national capability.
“Through the Type 26 programme, we are transforming the way we design and manufacture naval ships with innovative new technologies, leading-edge processes and modern infrastructure.
“New ways of working ensure we can continue to deliver the highest quality equipment at the lowest possible cost and compete effectively for future UK and international orders.”
The Type 26 programme will sustain the UK's sovereign abililty to design and build warships for the next 20 years, and follows on from theGovernment's £348m order for three offshore patrol vessels last year, which are being built by BAE.
Prime Minister David Cameron said: “This is a substantial investment in our shipbuilding industry. Investing in these warships will ensure we continue to keep our country safe, at home and abroad.
An official final decision on the Government’s investment in the Type 26s is expected later this year, but defence analyst Howard Wheeldon of Wheeldon Strategic Advisory said the announcement signals thinking around the programme’s future.
“The message from this is commitment,” he said. “If they left this contract until the ‘main gate’ decision later this year it would be impossible to meet the delivery schedules.”
Despite pressure on military spending, he said he was hopeful that the full 13 vessels would be built.
“They were intended as one for one replacements and the Navy is fighting very hard for that,” Mr Wheeldon said. “It is a very good and affordable design.”
Under current plans, the first steel for the Type 26s would be cut in next year, with the first ship in the class going into service with the Navy in 2020. The ships are expected to have service lives of 40 years.
The announcement comes a day after BAE delivered its annual results, in which the company hinted that the years of austerity which have squeezed defence budgets could be coming to an end.
The company has signed a demonstration contract that will provide funding to begin ordering major parts for the new Type 26 Global Combat ships.
Under the deal, which moves the programme from development towards the early stages of manufacturing, BAE will begin investing in systems for the first three vessels in the class, which require long lead times to build, such as gas turbines engines, diesel generators and steering gear. It will also begin work on on shore testing facilities for the ships.
The Type 26s are intended to be built as one for one replacements for the Navy’s current Type 23 frigates, meaning that 13 of the new ships could be brought into service, where they will make up the core of the fleet.
BAE gets £859m boost for Navy's new Type 26 frigates - Telegraph
BAE will build the new ships at its Glasgow shipyards, and the contract will support 600 jobs there as well as a further 1,000 positions throughout the UK within the defence company itself and its supply chain.
![ship-1_2314857b.jpg](/proxy.php?image=http%3A%2F%2Fi.telegraph.co.uk%2Fmultimedia%2Farchive%2F02314%2Fship-1_2314857b.jpg&hash=b207479d095819ae77aa26b74d6c913f)
Ian King, BAE chief executive, said: “We have a long and proud heritage of delivering complex warships in the UK and this announcement is a significant endorsement of the Government’s commitment to sustain this important national capability.
“Through the Type 26 programme, we are transforming the way we design and manufacture naval ships with innovative new technologies, leading-edge processes and modern infrastructure.
“New ways of working ensure we can continue to deliver the highest quality equipment at the lowest possible cost and compete effectively for future UK and international orders.”
The Type 26 programme will sustain the UK's sovereign abililty to design and build warships for the next 20 years, and follows on from theGovernment's £348m order for three offshore patrol vessels last year, which are being built by BAE.
Prime Minister David Cameron said: “This is a substantial investment in our shipbuilding industry. Investing in these warships will ensure we continue to keep our country safe, at home and abroad.
An official final decision on the Government’s investment in the Type 26s is expected later this year, but defence analyst Howard Wheeldon of Wheeldon Strategic Advisory said the announcement signals thinking around the programme’s future.
“The message from this is commitment,” he said. “If they left this contract until the ‘main gate’ decision later this year it would be impossible to meet the delivery schedules.”
Despite pressure on military spending, he said he was hopeful that the full 13 vessels would be built.
“They were intended as one for one replacements and the Navy is fighting very hard for that,” Mr Wheeldon said. “It is a very good and affordable design.”
Under current plans, the first steel for the Type 26s would be cut in next year, with the first ship in the class going into service with the Navy in 2020. The ships are expected to have service lives of 40 years.
The announcement comes a day after BAE delivered its annual results, in which the company hinted that the years of austerity which have squeezed defence budgets could be coming to an end.