BAE Systems and MoD sign £859m Type 26 contract

BAE Systems has signed a contract worth £859m with the Ministry of Defence to continue with the progression of the Type 26 Global Combat Ship.

Designed to replace the Royal Navy’s Type 23 frigate, the Type 26 will fulfil a number joint and multinational operations including warfare, counter-piracy, humanitarian and disaster relief operations.

According to a statement, around 1,700 jobs will be sustained as a result of the investment in the Type 26, with 600 of the jobs safeguarded in Scotland, where the ship will be built.

Various other sites across the country will also benefit from today’s announcement including in Derbyshire, West Yorkshire, Manchester, Cheshire, Warwickshire, Leicestershire and Hampshire.

In a statement Michael Fallon, Defence secretary, said: ‘This announcement is a clear vote of confidence in British industry and forms part of our commitment to invest over £160bn in equipment and equipment support over the next 10 years.

‘As a result, our military will have some of the most impressive and technologically advanced capabilities in the world; from the aircraft carriers and the F-35 Lightning II fighter jets, to the Type 45 destroyers, Scout armoured vehicles, the A400M and the Astute Class submarines.’

The new contract will include investment in essential long lead items for the ships, shore-testing facilities. There will also be investment in 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.

The £859m demonstration contract for the Type 26 follows the recent contract for three Offshore Patrol Vessels, which are already under construction in Glasgow.