Portsmouth shipbuilding ends as BAE Systems cuts marine division

BAE’s Portsmouth facility will shed 940 staff and cease shipbuilding in 2014. A further 835 positions are being cut over the next three years at Filton, Glasgow and Rosyth.

BAE anticipates a significant reduction in workload following peak activity on the Aircraft Carrier programme, the six Type 45 destroyers and two export contracts.

Under the Terms of Business Agreement signed with BAE Systems in 2009, the Ministry of Defence (MoD) would have been liable to pay for any periods when no shipbuilding was taking place at UK yards.

Under the new arrangement, the MoD will meet the cost of the restructuring exercise that will see BAE consolidate its shipbuilding operations in Glasgow.

BAE said it will invest in Glasgow ‘to create a world-class capability, positioning it to deliver an affordable Type 26 [global combat ship] programme for the Royal Navy.’

The defence company added that Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow and that three new Royal Navy Offshore Patrol Vessels, announced today by the MoD, would be constructed on the Clyde.