BAE Systems Maritime – Naval Ships

Defence Industrial Strategy The Ministry of Defence's (MOD) 2005 Defence Industrial Strategy encouraged BAE and VT Group to form a naval shipbuilding joint venture with the aim of maintaining the UK's naval shipbuilding capability in the long-term. In return, in July 2007 the MoD guaranteed the new company a certain amount of work for 15 years, or to pay penalties instead. The Terms of Business Agreement (ToBA) finally signed in July 2009 promised a minimum level of ship build and support activity of around £230 million/year to sustain a warship industry in the UK. The government could cancel the deal at any time, subject to penalties which would decline over the course of the agreement but which would have been £630m at the time of the 2010 SDSR, Explaining the rationale for the joint venture from VT Group's perspective, its CEO Paul Lester described shipbuilding as a "lumpy" business, dependent on large contracts placed at irregular intervals. Another issue was the competition between VT and BAE: "We don't want to get into a dogfight with BAE over who would be the survivor... That's what you'd be talking about at some stage." Following the Ministry of Defence's announcement on 20 May 2008 that it intended to proceed with the manufacturing stage of the project, BAE announced its intention to finalise the joint venture arrangements with VT Group. In return, VT Group acquired BAE System's 50% share in their other joint venture company Flagship Training, now known as VT Flagship. BVT Surface Fleet subsumed another BAE/VT joint venture, Fleet Support Limited, a ship repair, maintenance and marine engineering company, based within HMNB Portsmouth. The new 15-year Terms of Business Agreement with the Ministry of Defence did result in some controversy however. On 30 June 2009, a BVT memo was leaked which suggested that two of the company's three shipyards could be closed following completion of Queen Elizabeth-class carrier construction. In response to the leak, BVT said the memo was "worst-case scenario planning" and that it continues to invest in the future of all its yards. However a MOD spokesman said "[the MOD] had to look at the consequences of reduced demand for navy shipbuilding." However, on 28 January 2009 VT Group announced its intention to sell its share. VT Group's put option valued its share at a minimum of £380 million subject to conditions; however it received £346 million after various payments to BAE. In addition, VT Group agreed to pay £43 million compensation to BVT for cost overruns on contracts with Trinidad & Tobago and Oman that BVT had inherited from VT Shipbuilding. VT Group's net proceeds from the sale of its share in BVT to BAE Systems were therefore £303 million. ==Products and services==

module blocks of Type 45 destroyer, HMS Dauntless, at BAE's Portsmouth Shipbuilding hall. hull under final assembly, prior to launch, at the BAE Shipyard in Govan, Glasgow, 2010. The Govan Shipyard is the company's primary facility for steel fabrication. at Scotstoun in 2006. BAE and VT collaborated on the Type 45 class prior to the creation of the BVT Surface Fleet joint venture in 2008. for "float off" launching, before the ship is brought to Scotstoun for fitting out. Aircraft carriers and amphibious assault ships BAE Systems Maritime is undertaking a majority of the workload for the two aircraft carriers, the first of which was floated off in July 2014 and is now in commission. As part of the Aircraft Carrier Alliance, Thales and Babcock were also involved in the project. Frigates and corvettes BAE Systems Maritime inherited the £400 million Khareef-class corvette project from VT Group, which will see three ships delivered to the Royal Navy of Oman in 2013–14. BAE Systems Maritime – Naval Ships' yards have also delivered the following in the recent past: • s to the Royal Brunei Navy (Indonesian Navy from 2013) • s to the Royal Navy of Oman • for the Royal Malaysian Navy Design work is currently underway on the Type 26 frigate project for the Royal Navy, as part of the wider Global Combat Ship programme, which will eventually replace the Type 23 frigates currently in service. Construction of the first of class, HMS Glasgow, started on 20 July 2017 with first steel being cut in the Govan shipyard. Offshore patrol vessels and fast attack craft VT Shipbuilding was responsible for the construction of four s for the Royal Navy, with through-life maintenance the ongoing responsibility of BAE Systems Maritime; initially the company leased them to the UK Ministry of Defence until the MoD found the money to buy them. The company completed three OPVs based on the Rivers for the Trinidad and Tobago Defence Force in 2010. After the contract was cancelled by the Trinidad & Tobago government in September 2010, these vessels were subsequently contracted for delivery to the Brazilian Navy in January 2012 as the Amazonas class. A technology transfer agreement with Bangkok Dock to build a similar OPV, , for the Royal Thai Navy was agreed in June 2009. In 2014 the Royal Navy company signed a £348m deal for three improved Rivers to keep the company busy until Type 26 construction began using money that would have been paid to BAE anyway under the ToBA. BAE Systems Maritime also has a technology transfer agreement in place with Elefsis Shipyards for the construction of the for the Hellenic Navy, which are based on the Barzan (Vita)-class FACs currently in service with the Qatar Armed Forces; itself based upon Vosper Thornycroft's patrol craft built for the Royal Navy of Oman and the Kenya Navy. Auxiliaries BAE was initially part of a consortium bidding for the Military Afloat Reach and Sustainability (MARS) programme, which was to see up to six replenishment at sea tankers built for the Royal Fleet Auxiliary. BAE was partnered with BMT Defence Services and Daewoo Shipbuilding & Marine Engineering – the eventual winners – for the project, but subsequently withdrew from the consortium before the final round. BAE Systems had previously been prime contractor on the programme for the Royal Fleet Auxiliary. Halmatic small boats operates ship repair and refit facilities within Portsmouth Naval Base. BAE Systems Maritime – Naval Ships' capabilities also extend to Mine countermeasures vessels (The in service with the Royal Navy, Royal Saudi Navy and Estonian Navy), prime contracting on hydrographic survey vessels such as the , Scott class and the design and production of the smaller Halmatic range of boats such as landing craft, rigid-hulled inflatable boats and rigid buoyant boats. These products include the Lifespan Patrol Vessel, Rigid Raider, Mk 6 Assault Boat and Combat Support Boat types currently in service with the British Armed Forces and other Navies, such as the Jordanian Royal Naval Force and the Republic of Singapore Navy. Support services BAE Systems Maritime's Support services include supply chain management and logistics support. The BAE subsidiary BAE Systems Maritime – Maritime Services provides through life maintenance, ship repair and drydock refit services for naval and merchant vessels. Past projects have included the reactivation of the Upholder class, now reactivated as the Victoria-class submarines for the Royal Canadian Navy. It has also refitted two ex-Royal Navy Type 22 (Batch 2) frigates for the Romanian Naval Forces and a similar programme for the Chilean Navy involving the refurbishment of three ex-Royal Navy Type 23 frigates. In July 2009, BVT Surface Fleet established the Gulf Logistics and Naval Support joint venture with Abu Dhabi Shipbuilding, to provide in-region maritime support services for CCASG member states. in December 2010, with on the left preparing for sea trials. ==See also==