The prime has received a £4.2 billion order from the UK’s Ministry of Defence to build the next five Type 26 frigates for the Royal Navy.
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The City Class frigates will be constructed in Glasgow.
The vessels will house anti-submarine warfare and high-intensity air defence capabilities and will be also used to support humanitarian missions.
There are currently three of the frigates under construction in Glasgow, with the HMS Glasgow expected to be delivered to the Royal Navy in the mid-2020s.
Secretary of Defence Ben Wallace explained that the contract was fundamental to ensuring the Royal Navy maintains a capability edge.
“We are investing in our fleet to ensure our Royal Navy maintains its world-leading capability to protect and defend our nation at sea,” Secretary Wallace explained.
“This design has already been successfully exported to Australia and Canada, proving itself as a world-class maritime capability, securing thousands of UK jobs and strengthening alliances with our allies.
“Supporting thousands of high-skilled jobs in Scotland, and more across the wider UK supply chain, this contract will continue to boost our British shipbuilding industry, galvanising the very best of British engineering, manufacturing and design.”
The program draws together 120 suppliers from across the UK.
Charles Woodburn, chief executive of BAE Systems, explained that the frigates ensure that the Royal Navy will remain at the “forefront”.
“This contract secures a critical UK industry and allows us to build on our long history of shipbuilding on the Clyde as we continue to deliver cutting-edge equipment to the Royal Navy into the next decade,” he explained.
“It underpins the ongoing investments we’re making in the skills, infrastructure and technologies needed to stay at the forefront of the maritime sector and to support the UK government’s National Shipbuilding Strategy.”