14th Dec 2005 15:45
Babcock International Group PLC14 December 2005 14 December 2005 Peter Rogers Andrew Lorenz or Richard MountainBabcock International Group PLC Financial DynamicsTelephone +44 (0)20 7291 5000 Telephone: +44 (0)20 7269 7291 Babcock Involvement in Aircraft Carrier Alliance Commenting on Babcock International PLC's ('Babcock') involvement in theAircraft Carrier Alliance, Peter Rogers, Chief Executive, said: "We are delighted that Babcock has been selected as a member of the AircraftCarrier Alliance and that its integration facilities in Rosyth will be engagedin delivering, with our partners, the largest and most powerful warships everconstructed in the UK." Attached to this statement is the MoD Press Notice which specifies and confirmsBabcock's position as a member of the Aircraft Carrier Alliance. - ends - Notes to editors: Babcock Involvement in Aircraft Carrier Alliance Babcock will construct the bow block and carry out the associated detaileddesign. The CVF will be assembled, set to work, and commissioned at Babcock'sRosyth facility with the block hook-up being managed by Babcock. In additionBabcock will support the Alliance in procurement and other elements of theprogramme. Initial work will commence immediately with engineering andpreparatory activity as lead in to the main construction programme. Babcock Engineering Services at Rosyth supports the activities of customers inthe defence, oil and gas, marine and supply chain service markets. The division, amongst other activities, refits Royal Navy warships and in recentyears has supported a number of Royal Navy warships, in particular the servingaircraft carrier fleet for which Babcock was awarded a 'gold standard' for thework performed in conjunction with our Ministry of Defence and Royal Navypartners by the National Audit Office. To support this activity Babcock Engineering Services has developed an extensiveinfrastructure and skilled workforce - the facilities at Rosyth include threedocks and a synchrolift within a unique closed basin facility, possessing theappropriate footprint to serve the requirements of the programme. About Babcock International Group PLC Babcock International Group PLC is an asset management business. We manage fixedinfrastructure and mobile assets. Babcock integrates labour, technicalcapabilities, systems and supply chain partners to meet the outsourcing needs ofcustomers for 'mission-critical' capabilities. In the year to 31 March 2005 sales from continuing business were £745 million.In June 2004 Babcock acquired the Peterhouse Group which brought; Rail andNetworks to the Group. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support andtraining services to the armed forces. Technical Services, providing engineering and logistical support to both thedefence and civil sectors in the UK. Engineering and Plant Services supplying design, installation and maintenancesupport to the energy sector in Africa and the US. It also holds the Volvofranchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK railinfrastructure. Networks, supporting the design, maintenance and renewal of power transmissionand cellular telecommunications networks in the UK. Babcock's head office is in London and the Company's shares are quoted on theLondon Stock Exchange in the support services sector (EPIC:BAB). For furtherinformation, please visit Babcock's website at www.babcock.co.uk. MoD Press Notice 14 December 2005 NEW ALLIANCE STRUCTURE DECIDES ON SHIPBUILD STRATEGY AS FUTURE AIRCRAFT CARRIERPROJECT MOVES INTO NEXT PHASE DEFENCE SECRETARY John Reid today announced a series of major developments inMoD's multi-billion pound programme to build a new class of aircraft carrier forthe Armed Forces. • The current carrier Alliance team of MoD, BAE Systems, Thales and KBR, is to be joined by VT Group and Babcock. • Plans for the construction and assembly of the ships at Alliance members' yards have been agreed. • MoD is to spend some £300M to develop the design of the ships to the point at which manufacturing can begin. • Commitment to some long-lead items for the ships will be made, where necessary, to maintain the programme. • It is also planned to explore, with the same companies, encompassing in-service support for the new carriers and the existing carriers through to their out of service dates. Mr Reid said: "These are major steps forward for the future carrier project. Work will nowcommence on finalising the delta design, which will ultimately provide the UKArmed Forces with the largest and most powerful warships ever constructed in theUK, and an expeditionary capability unparalleled outside of the US." As part of today's announcement, I am allocating some 60% of the ships'construction to named UK yards: BAE Systems at Govan and Barrow; VT inPortsmouth and Babcock in Rosyth. I can also confirm final assembly of bothcarriers will be at Rosyth. At the same time there is a substantial opportunity for the involvement of otherUK shipyards in the remaining parts of the build programme that will be open tocompetition. This could go well beyond traditional shipbuilders since theproject will use modern modular production techniques. "We will now work with industry to finalise the programme budget; to set aconstruction timetable and establish in-service dates; to ratify how the shipswill be supported through a service life of up to 50 years; and to ensure thatour detailed requirements are met. Together with the parallel design work, thismeans that when we come to commit to the manufacture of the project we can do sowith the highest degree of confidence and certainty in our plans." "Alongside this, I am announcing our intention of asking the alliance to putforward one integrated plan: not only to maintain the new carriers but to lookafter the existing carriers until they go out of service. By getting the samepeople to commit to maintain the existing carriers until the new ones are readyto go we will ensure there is a continuity of capability for the Royal Navy. "This project is a key to the Defence Industrial Strategy and marks the end tothe 'boom and bust' industrial cycle. The introduction of a managed and steadywork stream will allow industry to plan efficiently and to retain the highlyskilled workforce that has contributed to the fine tradition of shipbuilding inthis country. In addition, this project will sustain and create some 10,000 UKjobs around the country." Notes to Editors 1. The Main Gate approval required before projects move to manufacture has been split into two incremental steps. Today's announcement marks the movement of the Future Aircraft Carrier (CVF) project through the first step, from the MoD's assessment phase into the demonstration phase. This next phase of design work will further remove risk from the project and give greater understanding of projected costs which will allow MoD to make its main investment decision in confidence. At that time, we will announce expected programme costs and in service dates for the ships. 2. The Demonstration Phase work announced today will finalise the details of the CVF Delta design in readiness for manufacture. 3. Design Delta overall parameters include an estimated displacement of 65,000 tonnes, 280M length, 70M beam, 9M draught with a complement of 1500 (including Joint Force Air Group (JFAG)) and a total airgroup size of about 40 (JCA, MASC and Merlin). 4. Design Delta is an adaptable design that, while fitted with a ski-jump to operate short take off and vertical landing aircraft on build, can be altered later in its service life to accommodate catapults and arrestor gear to fly conventional carrier aircraft. This is future-proofing for a ship with a 50 year life. 5. Plans for the construction and assembly of the ships in yards owned by members of the new expanded Alliance include hull block 4 at BAES Govan, block 3 at BAES Barrow, block 2 at VT Group Portsmouth, and the bow (block 1) and final assembly at Babcock Rosyth, all subject to value for money and cost effectiveness considerations. This work is some 60% of the overall build. Substantial elements of the remainder of the ship super structure are to be competed for by other shipyards and manufacturing facilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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