UK MoD awards next phase Type 26 contract

The UK Ministry of Defence (MoD) has committed to the next phase of the Royal Navy's Type 26 Global Combat Ship programme, awarding a £859 million demonstration contract to BAE Systems.

The Type 26 demonstration contract builds on the initial assessment phase and takes effect from 1 April 2015, with the manufacturing phase of the programme expected to start in 2016 in Glasgow.

The new contract will include investment in essential long lead items for the ships and shore testing facilities. There will also be investment in key equipment for the first three ships – such as gas turbines, diesel generators and steering gear – allowing suppliers to plan, invest and secure their workforce on the project.

Ian King, chief executive, BAE Systems, said: 'We are committed to working with the government, the MoD and our partners in the maritime supply chain to ensure the navy has the capability it needs to protect national interests, while ensuring the best value for money for UK taxpayers.

'Through the Type 26 programme, we are transforming the way we design and manufacture naval ships with innovative new technologies, leading-edge processes and modern infrastructure.  New ways of working ensure we can continue to deliver the highest quality equipment at the lowest possible cost and compete effectively for future UK and international orders.'

The programme calls for 13 Type 26 ships to be delivered to the navy, the first of which will enter into service in the early 2020s. These ships are anticipated to remain in service until 2060.