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| BAE Systems boss says shipyard may close | BAE Systems boss says shipyard may close |
| (about 20 hours later) | |
| One of BAE Systems' major shipyards could be closed, the company's UK chief, Nigel Whitehead, has said. | |
| He told the Sunday Telegraph a decision would be made by the end of the year. | He told the Sunday Telegraph a decision would be made by the end of the year. |
| The firm was working with ministers to explore all options for maintaining the UK's shipbuilding capability, he said. | The firm was working with ministers to explore all options for maintaining the UK's shipbuilding capability, he said. |
| The future of its three main shipyards - in Portsmouth, and Govan and Scotstoun on the River Clyde - after two new aircraft carriers are completed has been in doubt for some time. | The future of its three main shipyards - in Portsmouth, and Govan and Scotstoun on the River Clyde - after two new aircraft carriers are completed has been in doubt for some time. |
| There are fears there will be insufficient work available to keep all three busy and profitable as cuts in defence spending take their toll. | There are fears there will be insufficient work available to keep all three busy and profitable as cuts in defence spending take their toll. |
| "The issue is how to consolidate... but make sure that we've preserved the capability to design and manufacture complex warships," Mr Whitehead told the newspaper. | "The issue is how to consolidate... but make sure that we've preserved the capability to design and manufacture complex warships," Mr Whitehead told the newspaper. |
| "We anticipate that there will be a reduction in footprint and we anticipate... that part of that might actually be the cessation of manufacturing at one of the sites." | "We anticipate that there will be a reduction in footprint and we anticipate... that part of that might actually be the cessation of manufacturing at one of the sites." |
| Earlier this year the company appointed consultants to carry out a review of the business. The firm's yard in Portsmouth is widely believed to be the most vulnerable, with 1,500 jobs at risk. | Earlier this year the company appointed consultants to carry out a review of the business. The firm's yard in Portsmouth is widely believed to be the most vulnerable, with 1,500 jobs at risk. |
| However, two bases on the River Clyde, at Govan and Scotstoun are also under scrutiny. | However, two bases on the River Clyde, at Govan and Scotstoun are also under scrutiny. |
| BAE Systems says it is working closely with the government to explore all options for maintaining the UK's shipbuilding capability. | BAE Systems says it is working closely with the government to explore all options for maintaining the UK's shipbuilding capability. |
| The Ministry of Defence says that it is up to the company itself to decide how best to deliver the naval vessels it has already agreed to produce. | The Ministry of Defence says that it is up to the company itself to decide how best to deliver the naval vessels it has already agreed to produce. |
| In October, BAE Systems and Franco-German firm EADS cancelled their planned merger, after talks were thwarted by political deadlock. | In October, BAE Systems and Franco-German firm EADS cancelled their planned merger, after talks were thwarted by political deadlock. |
| The UK had wanted its counterparts to agree to limit their influence in the merged firm in order to maintain BAE's strong working relations with the US Pentagon. | The UK had wanted its counterparts to agree to limit their influence in the merged firm in order to maintain BAE's strong working relations with the US Pentagon. |