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Royal Navy Type 31 frigate order goes to Babcock | Royal Navy Type 31 frigate order goes to Babcock |
(32 minutes later) | |
The race to design and build a new generation of Royal Navy frigates has been won by engineering firm Babcock. | The race to design and build a new generation of Royal Navy frigates has been won by engineering firm Babcock. |
It has been named preferred bidder for the £1.25bn contract for five Type 31 warships. | It has been named preferred bidder for the £1.25bn contract for five Type 31 warships. |
The deal secures hundreds of jobs at Rosyth in Fife, where the ships will be assembled, with construction work expected to be spread between yards across the UK. | The deal secures hundreds of jobs at Rosyth in Fife, where the ships will be assembled, with construction work expected to be spread between yards across the UK. |
Work is to begin by the end of 2019, with the first ships delivered in 2023. | Work is to begin by the end of 2019, with the first ships delivered in 2023. |
The Type 31 is a smaller, cheaper frigate than the Type 26 warships currently being built at the Upper Clyde shipyards. | The Type 31 is a smaller, cheaper frigate than the Type 26 warships currently being built at the Upper Clyde shipyards. |
With a price ceiling of £250m per ship, the aim is to maintain the size of the Navy's surface fleet and generate export orders. | With a price ceiling of £250m per ship, the aim is to maintain the size of the Navy's surface fleet and generate export orders. |
Prime Minister Boris Johnson said the modular construction method would support 2,500 jobs throughout the UK. | Prime Minister Boris Johnson said the modular construction method would support 2,500 jobs throughout the UK. |
He said the UK was "a great shipbuilding nation" and that there were "all sorts of ways" in which UK naval vessels were helping the modern world. | He said the UK was "a great shipbuilding nation" and that there were "all sorts of ways" in which UK naval vessels were helping the modern world. |
He added: "What it delivers is high quality jobs for young people - really high-skilled jobs for young people in this country - but also massive export opportunities of vessels that not only help to keep the peace but tackle piracy, help dealing with immigration issues across the seas." | He added: "What it delivers is high quality jobs for young people - really high-skilled jobs for young people in this country - but also massive export opportunities of vessels that not only help to keep the peace but tackle piracy, help dealing with immigration issues across the seas." |
The Babcock team's Arrowhead 140 design beat competition from a Cammell Laird/BAE Systems consortium and a bid led by Atlas Elektronik UK. | The Babcock team's Arrowhead 140 design beat competition from a Cammell Laird/BAE Systems consortium and a bid led by Atlas Elektronik UK. |
The winning consortium also includes Thales and BMT, as well as Ferguson Marine, based in Port Glasgow, and Harland and Wolff in Belfast - both of which are currently in administration. | The winning consortium also includes Thales and BMT, as well as Ferguson Marine, based in Port Glasgow, and Harland and Wolff in Belfast - both of which are currently in administration. |
Last month, Babcock insisted these firms' financial difficulties would not affect its bid because its "flexible build approach" could accommodate "a range of delivery sites". | Last month, Babcock insisted these firms' financial difficulties would not affect its bid because its "flexible build approach" could accommodate "a range of delivery sites". |
'Excellent news' | 'Excellent news' |
Scotland's Economy Secretary Derek Mackay said the awarding of the contract was "testament to the skilled workforce and expertise which we have in Scotland". | Scotland's Economy Secretary Derek Mackay said the awarding of the contract was "testament to the skilled workforce and expertise which we have in Scotland". |
He added: "I have spoken with Babcock this morning to assure them they have the full support of the Scottish government. | He added: "I have spoken with Babcock this morning to assure them they have the full support of the Scottish government. |
"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." | "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." |
Unions also welcomed the announcement, with Unite saying it would secure hundreds of jobs at Rosyth "for well over a decade". GMB Scotland said it was "excellent news", adding that the team that put the bid together "should be congratulated". | Unions also welcomed the announcement, with Unite saying it would secure hundreds of jobs at Rosyth "for well over a decade". GMB Scotland said it was "excellent news", adding that the team that put the bid together "should be congratulated". |
Type 31 - the 'Lidl frigate' | Type 31 - the 'Lidl frigate' |
By Calum Watson, BBC Scotland news | |
Three different designs were in the running for the Type 31 contract but they all have something in common - they're cheap. | Three different designs were in the running for the Type 31 contract but they all have something in common - they're cheap. |
The price cap of £250m per ship might sound a lot of money but, to put it in context, the bill for the eight Type 26 frigates currently under construction comes to about £8bn. | The price cap of £250m per ship might sound a lot of money but, to put it in context, the bill for the eight Type 26 frigates currently under construction comes to about £8bn. |
The extremely tight cost constraints on the new ship have led some critics to describe it as "the Lidl frigate". | The extremely tight cost constraints on the new ship have led some critics to describe it as "the Lidl frigate". |
Each bidder has tried to keep the price down by basing their designs on successful existing ships rather than starting from scratch. | Each bidder has tried to keep the price down by basing their designs on successful existing ships rather than starting from scratch. |
Babcock's "Team 31" design is derived from the Iver Huitfeldt frigates developed for the Danish navy. | Babcock's "Team 31" design is derived from the Iver Huitfeldt frigates developed for the Danish navy. |
Plenty of flexibility has been factored in - equipment can be upgraded or reconfigured for different roles . | Plenty of flexibility has been factored in - equipment can be upgraded or reconfigured for different roles . |
The ship is sometimes referred to as the Type 31e - the "e" standing for exportability. | The ship is sometimes referred to as the Type 31e - the "e" standing for exportability. |
The hope is that this "bargain basement ship" will prove its worth and orders from foreign navies will lead to economies of scale that will drive down costs. | The hope is that this "bargain basement ship" will prove its worth and orders from foreign navies will lead to economies of scale that will drive down costs. |
Such value for money, some argue, might even tempt the Royal Navy to bolster its surface fleet by increasing the order. | Such value for money, some argue, might even tempt the Royal Navy to bolster its surface fleet by increasing the order. |
Political sensitivities | Political sensitivities |
The last big frigate order - for the Type 26 - was announced in the summer of 2014, just months before the Scottish independence referendum, with the work going to the BAE Systems yards in Glasgow. | The last big frigate order - for the Type 26 - was announced in the summer of 2014, just months before the Scottish independence referendum, with the work going to the BAE Systems yards in Glasgow. |
While the government insisted this was a value-for-money decision, many pro-union campaigners argued it demonstrated the benefits of being part of the UK. | While the government insisted this was a value-for-money decision, many pro-union campaigners argued it demonstrated the benefits of being part of the UK. |
The 2015 Strategic Defence and Security Review scaled back the expected size of the Type 26 fleet from 13 to eight ships - and instead proposed building "at least five" new general purpose frigates, at a much lower cost. | The 2015 Strategic Defence and Security Review scaled back the expected size of the Type 26 fleet from 13 to eight ships - and instead proposed building "at least five" new general purpose frigates, at a much lower cost. |
With no guarantee this work would come to Scotland, pro-independence campaigners condemned this as a broken promise. | With no guarantee this work would come to Scotland, pro-independence campaigners condemned this as a broken promise. |
In 2017, the government's new National Shipbuilding Strategy, based on Sir John Parker's independent review, sought to encourage competition in naval procurement, with an emphasis on supporting shipyards across the UK. | In 2017, the government's new National Shipbuilding Strategy, based on Sir John Parker's independent review, sought to encourage competition in naval procurement, with an emphasis on supporting shipyards across the UK. |
The choice of Babcock - with its Rosyth site playing a key role in construction but with work spread across various UK sites - is in line with this strategy. | The choice of Babcock - with its Rosyth site playing a key role in construction but with work spread across various UK sites - is in line with this strategy. |
It also reduces the government's reliance on BAE Systems, which has long been the dominant force in naval shipbuilding. | It also reduces the government's reliance on BAE Systems, which has long been the dominant force in naval shipbuilding. |
The rival BAE Systems bid would have seen the company providing design expertise but the bulk of construction would have taken place at the Cammell Laird shipyard in Merseyside. | The rival BAE Systems bid would have seen the company providing design expertise but the bulk of construction would have taken place at the Cammell Laird shipyard in Merseyside. |