SAIL OF CENTURY
£1.3bn contract will secure 2500 UK jobs
HUNDREDS of jobs in Scotland have been secured after Babcock won a £1.3billion contract to build a new fleet of Navy frigates.
The five ships will be assembled at the engineering giant’s Rosyth dockyard in Fife and will involve supply chains throughout the UK.
More than 2500 jobs across the UK are expected to be supported by the Type 31 programme, including 150 new technical apprenticeship positions.
Scotland’s Economy Secretary Derek Mackay said: “This contract will secure work at Rosyth for the next decade.
“The awarding of this contract is a testament to the skilled workforce and expertise which we have in Scotland.”
Babcock said work on the Arrowhead 140 fleet will begin immediately once the formal contract is awarded later this financial year.
Manufacture will start in 2021, with the first ships launched in 2023.
The contract may offer a lifeline to the crisis-hit Ferguson Marine shipyard in Port Glasgow.
Mackay added: “Once the final details of the contract are announced, we look forward to discussions on the role that Ferguson Marine could play alongside other suppliers in Scotland.”
The average production cost of each ship is £250million.
Babcock saw off rival bids from two other consortiums, one of which was led by BAE Systems.
The announcement was made by Boris Johnson.
He said: “I’m so excited because I see the UK as a great shipbuilding nation – we already are but we want to expand it.
“What it delivers is high-quality jobs for young people but also massive export opportunities of vessels.”
Scottish Secretary Alister Jack said: “Scotland has a world-renowned reputation for quality shipbuilding.
“The Type 26 programme has already secured 4000 Scottish jobs and 20 years of work on the Clyde and I’m looking forward to Babcock keeping Scotland at the forefront of a renaissance in UK shipbuilding.”
The Prime Minister has appointed Defence Secretary Ben Wallace as a shipbuilding tsar to enhance the UK’s production.
He will look at how the Government can use further education, skilled apprenticeships and graduates to achieve a sustainable skills base.
Babcock chief executive Archie Bethel said: “Arrowhead 140 will offer the Royal Navy a new class of ship with a proven ability to deliver peacekeeping, humanitarian and war-fighting capabilities, while offering communities and supply chains throughout the UK a wide range of economic and employment opportunities.”