1st Oct 2014 09:00
LONDON (Alliance News) - BAE Systems PLC Wednesday said it has been handed a GBP600 million contract to manage Portsmouth Naval Base and to support the Royal Navy's surface fleet and global operations at the site.
BAE said the awarding of the five-year Maritime Support Delivery Framework contract by the UK Ministry of Defence supports more than 2,000 jobs.
Under the deal, the FTSE 100 aerospace and defence group will provide support services to ships and will handle the management of the Portsmouth Naval Base on behalf of the Royal Navy.
"This is an exciting time for everyone at the naval base. Working together, we will prepare the naval base for the arrival of the UK?s Queen Elizabeth Class Aircraft Carriers and continue to use our ship design and build knowledge to support the surface Fleet in service. This supports the Royal Navy?s operational capability and will deliver further savings for taxpayers," said John Hudson, Managing Director of Maritime at BAE.
Defence contractor Babcock International Group PLC also said it has won a GBP2.6 billion contract extension to continue providing services at the Clyde and Devonport naval bases through to March 2020 under the same framework.
About GBP600 million of the contract is already on Babcock's order books as the deal replaces a previous contract, but it will bolster its order book by about GBP2 billion, it said.
BAE shares were up 0.3% to 472.8 pence on Wednesday. Babcock shares were flat at 1,092.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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