20th Feb 2015 12:51
LONDON (Alliance News) - The UK Prime Minister and Ministry of Defence Friday said the government has signed a contract with BAE Systems PLC worth GBP859 million for the construction of the future Type 26 complex warship, the next generation Royal Navy frigates.
The T26 Global Combat Ship will be a multi-mission warship capable of joint and multinational operations across the full spectrum of warfare, including complex combat operations, counter-piracy, humanitarian and disaster relief work.
"We have a long and proud heritage of delivering complex warships in the UK and today?s announcement is a significant endorsement of the Government?s commitment to sustain this important national capability," said BAE Chief Executive Ian King.
No specific details have been released about the contract, but the new contract will include investment in essential long-lead items for the ship's shore testing facilities and there will also be investment in key equipment for the first three ships such as gas turbines, diesel generators and steering gear. That will allow suppliers to plan, invest and secure their workforce on the project, said the Ministry.
Defence Secretary Michael Fallon said the investment is part of a larger GBP160 billion, which will be invested in equipment and equipment support over the next 10 years.
BAE shares were up 0.9% to 530.42 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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