UK carrier contract

The UK

has announced a £3bn contract for two future aircraft carriers with BVT Surface Fleet and the Aircraft Carrier Alliance, which will perform the manufacturing phase of the carrier programme (CVF).

The contract includes £1,325m to BVT and £300m to BAE Systems for the construction of giant sections of both ships; £675m to Babcock Marine for the bow section, final assembly and completion of the ships; £425m to Thales UK for design and engineering; and £275m to BAE for design and supply of mission systems for its Integrated Systems Technologies (Insyte).

Defence secretary Des Browne said: ‘The two aircraft carriers will provide our forces with the world-class capabilities they will need over the coming decades. They will support peace-keeping and conflict prevention, as well as our strategic operational priorities.’

Alex Dorrian, Thales UK CEO, said: ‘This means that the Aircraft Carrier Alliance, of which Thales UK is a founding partner, can now begin construction of these ships. We are proud to have been involved from the very early stages in the design of what will be the Royal Navy's largest and most powerful warships.

‘Thales is also working with BAE Systems in delivering the CVF's mission systems, including the development and manufacture of the communications element. In the longer term, the company is committed to playing a full role in supporting the carriers in service.’

The carriers will create or sustain 10,000 jobs.

The VT Group owns 45 per cent of BVT, with the remaining 55 per cent owned by BAE Systems.

Paul Lester, VT Group chief executive, said: ‘The formal signing of the manufacturing contract for CVF is a major boost for our new joint venture and will ensure that UK shipbuilding has a healthy workload for several years to come.’