BAE Secures £4.2 Billion Deal to Construct Additional Five Type 26 Frigates in Glasgow
The UK Ministry of Defence has granted a £4.2bn contract to BAE Systems for the production of the subsequent five City Class Type 26 frigates for the Royal Navy in Glasgow.
This contract preserves over 4,000 positions throughout BAE Systems and the broader UK maritime supply chain. It also ensures shipbuilding at BAE Systems’ sites in Scotland extending into the 2030s. Approximately £1.8bn of the new contract will be allocated within the supply chain, including £1.2bn designated for UK-based suppliers.
The Type 26 represents one of the globe’s most sophisticated warships. It is engineered for anti-submarine operations and intense air defense, yet it can swiftly adjust its purpose to transport substantial volumes of humanitarian assistance and accommodate medical systems.
Currently, three Type 26 vessels are under construction in Glasgow, with the inaugural unit, HMS Glasgow, set to launch later this year and be handed over to the Royal Navy by the mid-2020s. The assembly of HMS Cardiff and HMS Belfast is also in progress.
“We are investing in our fleet to ensure our Royal Navy retains its leading-edge capability to safeguard and defend our nation at sea. This design has already been successfully exported to Australia and Canada, demonstrating its status as a premier maritime capability, securing thousands of UK jobs and fortifying partnerships with our allies. By supporting thousands of skilled positions in Scotland, along with more across the wider UK supply chain, this contract will further enhance our British shipbuilding sector, showcasing the finest in British engineering, manufacturing, and design.” Ben Wallace, Secretary of State for Defence
“This agreement secures a vital UK industry and enables us to build on our extensive history of shipbuilding on the Clyde as we continue to provide cutting-edge equipment to the Royal Navy well into the next decade. It underpins the ongoing investments we’re making in the skills, infrastructure, and technologies essential to remain at the forefront of the maritime domain and to support the UK Government’s National Shipbuilding Strategy.” Charles Woodburn, Chief Executive, BAE Systems
The Type 26 initiative is a nationwide UK project, with over 120 UK suppliers already having secured contracts associated with the new series of frigates, encompassing steering gears in Dunfermline, gas turbines in Filton, and maritime LED lighting in Cumbria.
This year, 180 new trainees joined the 400 already employed at BAE Systems on the Type 26 initiative. BAE Systems’ Naval Ships division employs 4,500 individuals across the UK and is actively recruiting an additional 400 skilled tradespeople as the program continues to expand.
The Company is investing around £15m in a new Applied Shipbuilding Academy in Glasgow to facilitate the growth of the entire workforce, from apprentices to senior executives. Additionally, BAE Systems has sought planning approval to initiate construction on a new shipbuilding hall valued at over £100m, significantly enhancing productivity on the Clyde to support the delivery of these eight vessels and future contracts.
The Commonwealths of Australia and Canada have chosen the Type 26 design, which, alongside the UK, anticipates a 32-ship program across the three nations. Sharing construction and transition experiences across all three programs will provide advantages to all participants in this multinational collaboration.
