GLASGOW shipyards could receive a jobs
Tuesday 24 November 2009 11:09 AM
GLASGOW shipyards could receive a jobs boost from a new Royal Navy warships contract.
BAE Systems has won a £3.4million Ministry of Defence contract for the Navy's next generation of warships.
The Future Surface Combatant (FSC) programme will involve new vessels being built over the next 15 years and will also offer ships to order for export to other countries.
Executives could not confirm if the Glasgow yards will be involved yet but said the contract was hugely important.
Alan Johnston, managing director of BAE Systems' Surface Ships business, said: "The Future Surface Combatant programme is hugely important not only for the Royal Navy but also for the Clyde yards and the whole of the UK maritime industry.
"Working in close partnership with the MoD and industry from the outset has enabled open and frank discussions about requirements, capability and cost. This will help to ensure cost-effective upgrades, the capability to meet evolving maritime security requirements, and avoid costly late design decisions to deliver value for money for the MoD and the UK taxpayer."
The new vessels will replace existing Type 22 and Type 23 class frigates.
The contract will see BAE design and cost the programme before the MoD decides to take it further.
However, because of a 15-year terms of business agreement signed with the MoD earlier this year, BAE Systems will then lead the building of the ships.
The first of the fleet is due to enter service around the end of the next decade, with around half of frontline Navy personnel expected to operate on an FSC by the 2030s.
Jim Moohan, chairman of Scotland's Shipbuilding and Engineering Unions, welcomed the contract, saying: "It's good news. You have to give them credit for looking ahead so we can have continuity of job security."
Last year BAE invested more than £300m in Glasgow's economy.
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