Mr T
Senior Member
A double helping of good RN news!
So the deal is as good as done. Great stuff!
Definitely looks like UK builders do not have the capacity for MARS. But those ships are needed so I agree with a foreign build. Should save money too so more could be built or money could be put elsewhere.
BAE Systems and VT Group hope to finalise plans to put their shipbuilding operations into a joint venture by mid-June, following a promise from Defence Secretary Des Browne that the Government will definitely place a long-delayed order for two new Royal Navy aircraft carriers.
Mr Browne's assurance, in a written statement to Parliament yesterday, means the two companies can bring their three shipyards - at Portsmouth, on England's south coast, and Govan and Scotstoun, in Scotland - together in a new company owned 55pc by BAE and 45pc by VT.
The companies and the Ministry of Defence have been involved in a game of brinkmanship over whether they should form the joint venture before the £3.9bn contract is placed - or after. The aircraft carrier project was also caught in defence budget reviews amid fears that the order could be scrapped.
But Mr Browne said yesterday: "We have given our written assurance to the VT Group and BAE Systems of our intention to sign the contract. Following finalisation of legal arrangements and the formation of the planned naval shipbuilding and support joint venture company, formal contract signature will take place."
A provisional date of June 18 has been set for the signing of the manufacturing contract, once BAE and VT have created a new legal entity from their shipbuilding interests. VT will first need shareholder approval as the deal marks a material change of direction for the company, which is focusing on its support services operations. BAE has an option to buy out VT after three years.
The vessels, HMS Queen Elizabeth and HMS Prince of Wales, will measure 920 ft by 230 ft and carry 40 warplanes. The construction programme will create about 1,000 jobs and safeguard some 10,000 at four UK shipyards. Babcock and Thales UK are also part of the consortium building the warships.
So the deal is as good as done. Great stuff!
Britain's Ministry of Defence said on Wednesday four companies would help it develop plans for a new fleet of Royal Navy tankers, with one later getting a contract for the final design and construction.
The four companies are Italy's Fincantieri, Korea's Hyundai, Spain's Navantia, and a consortium of Britain's BAE Systems Plc (BAES.L: Quote, Profile, Research), BMT Group Ltd and Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd (042660.KS: Quote, Profile, Research).
"These four companies have demonstrated the capability and capacity to deliver in the timescales we need. We will be testing their proposals for value for money through the competition," Minister for Defence Equipment & Support Ann Taylor said in a statement. None of the four bidders have indicated they would build the tankers in Britain, the MoD said. "This reflects the fact that UK capacity is taken up by Type 45 (destroyers) and the Future Aircraft Carrier."
Definitely looks like UK builders do not have the capacity for MARS. But those ships are needed so I agree with a foreign build. Should save money too so more could be built or money could be put elsewhere.