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Posted: July 3, 2017 2:20 PM

BAE Systems Gets Contract for Type 26 Global Combat Ship

FARNBOROUGH, United Kingdom — BAE Systems has been awarded a contract by the U.K. Ministry of Defence worth $4.2 billion to manufacture the first three ships for the Type 26 Global Combat Ship program, with steel being cut on the first ship in Glasgow in the coming weeks, the company said in a July 2 release.

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 U.K. maritime supply chain.

“The Type 26 Frigate is a cutting-edge warship, combining the expertise of the British shipbuilding industry with the excellence of the Royal Navy,” said Defence Secretary Sir Michael Fallon. “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 defense budget and a [$203 billion] Equipment Plan, the Type 26 program will bring vast economic benefits to Scotland and the wider U.K.,” he said. “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 award of this contract is a strong endorsement of the talent and commitment of our employees across the U.K. and reinforces Glasgow as the center of shipbuilding in the U.K.,” said Charles Woodburn, chief executive officer, BAE Systems. “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 U.K. Government committed to eight advanced anti-submarine warfare ships in its 2015 Strategic Defense and Security Review. The Type 26 program currently employs more than 1,200 people in the U.K. supply chain, with many contracts already in place for the manufacture of major equipment for the first three ships. In total, there are already 33 U.K. 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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