Mr T
Senior Member
The Ministry of Defence and BVT Surface Fleet, a joint venture between BAE Systems and VT Group, have signed a landmark agreement worth at least £3.5bn to sustain Britain's shipbuilding industry over the next 15 years.
Britain's remaining shipyards are at full stretch building aircraft carriers, frigates and submarines. But the industry has long recognised that rationalisation is necessary.
Under the legally binding agreement, BVT has committed to find at least £350m of cost savings over 15 years in return for a guaranteed minimum workload from the MoD estimated at about £235m a year.
BVT will have "exclusive" rights to design, build, integrate and support shipbuilding programmes such as the Future Surface Combatant to replace Britain's ageing Type 23 frigates. The deal offers unprecedented visibility at a time when the defence budget is under pressure.
Good news. FSC project's moving forward!