3rd Jul 2008 10:00
3 July 2008
Babcock International Group PLC
Babcock welcomes the signing of the manufacturing contracts for the Aircraft Carrier programme
Commenting on today's announcement by the Ministry of Defence (``MoD'') that the manufacturing contract for the Future Aircraft Carrier (``CVF'') programme has been signed, Babcock welcomes the Government's commitment to deliver to the Royal Navy the largest and most capable warships ever built in the United Kingdom.
On 25 July 2007, the Secretary of State for Defence confirmed that the MoD would place an order for two aircraft carriers for the Royal Navy - HMS Queen Elizabeth and HMS Prince of Wales. Since then, as a key member of the Aircraft Carrier Alliance, Babcock has continued to play a significant role in the design of the two ships and has now begun major infrastructure work at its Rosyth dockyard in Scotland, to prepare the site for the assembly of both ships.
The contracts signed today will be worth some £675 million to Babcock through the duration of the programme until 2016. In addition to the design work currently being carried out, Babcock will be responsible for the construction of the bow sections of the ships, their final assembly and completion at Rosyth.
Peter Rogers, chief executive, said: ``We are delighted by this latest announcement which clearly marks the beginning of the manufacturing phase of this landmark programme. We look forward to participating with all our partners in what will be one of the most exciting British defence projects for many years.''
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Babcock International Group PLC |
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Peter Rogers, Chief Executive |
020 7291 5000 |
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Bill Tame, Finance Director |
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Terri Wright, Investor Relations |
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Financial Dynamics |
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Andrew Lorenz / Sophie Kernon |
020 7269 7121 |
Notes to Editors
The aircraft carriers will be delivered by the Aircraft Carrier Alliance, which comprises industry participants and MoD. The Industrial Participants will be: BVT Surface Fleet, Thales UK, Babcock and BAES (Submarine Solutions and Insyte). The MoD's Defence Equipment & Support (DE&S) is responsible for managing the procurement of the aircraft carriers. The MoD is part of the Alliance as both client and participant.
In line with recommendations made in the Government's 1998 Strategic Defence Review, CVF will replace the Royal Navy's current three Invincible class aircraft carriers with two larger, more capable vessels. The CVF or Queen Elizabeth class of carriers will be the largest capital ships ever constructed in the UK or operated by the Royal Navy and the most powerful carrier force outside the USA.
CVF should provide Babcock with a total of 9 million man hours of work: 7 million at Rosyth, 1 million at Appledore in Devon (where steel units for each ship's bow section will be constructed) plus another million in engineering.
Total carrier-related employment levels at Rosyth itself (including Alliance partner companies, commissioning staff and other sub contractors) will peak at about 2,000.
In February, a £35 million civil engineering contact was awarded by the Alliance to Edmund Nuttall to begin work on modifying the Rosyth docks to accommodate the CVF assembly. Further investment will follow, including the installation of a Goliath crane to move ship modules into position.
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