BAE Systems gets $1.32 billion U.K. frigate contract

The T26 Global Combat Ship (GCS) will be a multi-mission warship The T26 Global Combat Ship (GCS) will be a multi-mission warship

FEBRUARY 20, 2015 — British Prime Minister David Cameron today announced that the U.K. Ministry of Defence has signed a contract with BAE Systems worth £859 million (about $1.32 billion) for work on the future Type 26 complex warship – the next generation Royal Navy frigates.

The new contract includes investment in shore testing facilities and in long lead items and key equipment for the first three ships – such as gas turbines, diesel generators and steering gear – allowing suppliers to plan, invest and secure their workforce on the project.

Around 1,700 jobs will be sustained as a result of the investment – with 600 of the jobs safeguarded in Scotland, where the Type 26 will be built. Various other sites across the U.K. will also benefit from today’s announcement including in Derbyshire, West Yorkshire, Manchester, Cheshire, Warwickshire, Leicestershire and Hampshire.

"This is a substantial investment in our shipbuilding industry, safeguarding the jobs of 600 workers in Scotland and many more across the U.K.," said the Prime Minister. "Investing in these warships will ensure we continue to keep our country safe, at home and abroad."

The T26 Global Combat Ship (GCS) will be a multi-mission warship capable of joint and multinational operations across the full spectrum of warfare, including complex combat operations, counter-piracy, humanitarian and disaster relief work.
Defence Secretary, Michael Fallon called the announcement a clear vote of confidence in British industry" and part of a commitment to invest over £160 billion in equipment and equipment support over the next 10 years.

"We have a long and proud heritage of delivering complex warships in the U.K. and today’s announcement is a significant endorsement of the Government’s commitment to sustain this important national capability," said BAE Systems Chief Executive, Ian King. "We are committed to working with the Government, the Ministry of Defence and our partners in the maritime supply chain to ensure the Royal Navy has the capability it needs to protect national interests, while ensuring the best value for money for U.K. taxpayers."

"Through the Type 26 program, we are transforming the way we design and manufacture naval ships with innovative new technologies, leading-edge processes and modern infrastructure," Mr. King continued. "New ways of working ensure we can continue to deliver the highest quality equipment at the lowest possible cost and compete effectively for future U.K. and international orders."

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