Vosper Thornycroft, in concert with VSEL, has won a five-year contract to manage the Fleet Maintenance and Repair Organisation in Portsmouth.
Armed services minister Dr John Reid said on Tuesday that `initially there will be some redundancies’ among the 1,000-strong staff, who maintain navy ships and carry out small and medium-sized refits. It is understood that up to 90 jobs may go.
Fleet Support, the company formed by Vosper and VSEL, is offering savings of more than 30% in the operation, Reid said. Turnover is now around £50m a year, according to Vosper.
FSL said it aims for an increased Royal Navy workload and also wants to attract work from outside. Reid said that FSL had guaranteed a minimum level of commercial work into the facility and will maintain the apprentice training scheme.
Beaten in the contest was the Flagship group led by an in-house team, which won the support of local trade unions. Also beaten were DML, Serco and Babcock Defence with A&P Appledore.
The Engineer understands FSL may also have an option for a two-year extension for its management contract.