Prime Minister hails biggest Naval defence contract for a decade
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Prime Minister Theresa May has hailed a shipbuilding contract worth
up to £20 billion between BAE Systems and the Australian government
as the biggest Naval defence contract for a decade. BAE
Systems has been chosen as the preferred bidder for the ‘SEA 5000’
Future Frigate competition, with a design based on Britain’s Type
26 Global Combat Ship. It will involve BAE Systems building nine
British-designed warships in Adelaide, the first export of a
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Prime Minister Theresa May has hailed a shipbuilding
contract worth up to £20 billion between BAE Systems and the
Australian government as the biggest Naval defence contract for a
decade.
BAE Systems has been chosen as the preferred
bidder for the ‘SEA 5000’ Future Frigate competition, with a
design based on Britain’s Type 26 Global Combat Ship. It will
involve BAE Systems building nine British-designed warships in
Adelaide, the first export of a British design for new-build
frigates since the 1970s. The UK was chosen over bids from Italy
and Spain for the contract.
The agreement will secure more than 4000 jobs
in Australia and also boost Britain’s export economy for
generations to come, with huge opportunities set to arise which
the Government believes the specialist knowledge and capability
of British firms will be best placed to fulfil.
In turn, it is hoped that this will benefit
the UK economy, with exports having the potential to drive
regional growth, create new jobs and showcase the strength of
British innovation on the world stage.
The deal is a result of four years of
intensive government engagement involving a number of departments
across Whitehall. The Prime Minister has been directly
involved in making the case for the UK bid, including in
bilateral talks with Prime Minister Turnbull at Chequers earlier
this year.
Over the past 18 months the Foreign Secretary,
Defence Secretary, and International Trade Secretary have visited
Australia to extol the benefits of the UK’s world class design,
engineering and innovation.
Prime Minister Theresa May said:
“The sheer scale and nature of this contract
puts the UK at the very forefront of maritime design and
engineering and demonstrates what can be achieved by UK industry
and Government working hand-in-hand.
“We have always been clear that as we leave
the EU we have an opportunity to build on our close relationships
with allies like Australia. This deal is a perfect illustration
that the Government is doing exactly that.
“And while this is an enormous boost for the
UK economy, it will also cement our strategic partnership with
one of our oldest and closest friends for decades to
come.”
“The UK and Australia already enjoy a strong
trading relationship worth more than £13 billion a year. Today’s
announcement is a further boost to this relationship which will
create significant opportunities for companies in both countries
to deepen their trading ties.
“As an international economic department, we
are excited for the opportunities this will bring to both our
nations including increased data and information sharing,
high-end technology transfer, and collaboration at the
cutting-edge of maritime expertise. We look forward to
further discussion on future trade through our joint UK-Australia
trade working group.”
The news builds on the century-long ties
between the two national forces, and will allow interoperability
between Australian and Royal Navy ships amid a climate of
intensifying threats around the world, especially in the Middle
East and the Asia-Pacific regions.
It comes after the Royal Navy further boosted
its role in securing the Asia-Pacific when the Defence Secretary
announced that HMS Argyll would deploy to the region, marking the
first time three British warships have been sent there after HMS
Sutherland and HMS Albion set sail.
Defence Minister Guto Bebb said:
“BAE Systems’ winning bid highlights the best
of British shipbuilding design and our world-leading
anti-submarine warfare technology. Australian forces have stood
should-to-shoulder with our military for generations and this
deal will build on our strength as allies as our two great Navies
operate this cutting-edge frigate around the globe.”
The 6,900 tonne multi-mission warships are
designed to support anti-submarine warfare and a whole range of
other operations anywhere in the world. They will form a key part
of Australia’s hugely respected Navy.
The contract was secured with the UK committed
to getting eight of the Type 26 warfare frigates, which are
currently in-build on the Clyde in Scotland and set to enter
service with the Royal Navy in the 2020s.
The news comes ahead of key engagements next
month, including the Defence Industrial Dialogue between the
nations, as well as the annual AUKMIN talks between the Defence
Secretary, the Foreign Secretary and their Australian
Counterparts.
BAE Systems Chief Executive, Charles
Woodburn, said:
“BAE Systems’ selection as preferred tenderer
for SEA 5000 reinforces our position as a leading designer and
builder of complex maritime platforms.
“I am proud that our world class
anti-submarine warfare design and our approach to transferring
technology and skills to the nations in which we work is expected
to contribute to the development of an enduring world-class naval
shipbuilding industry in Australia.”
ENDS
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