BAE in talks to build five more submarine-hunting ships
BAE Systems is in “final phase” talks with the Government over a multibillion-pound deal for five new warships, amid growing concerns of military threats from Russia.
The Ministry of Defence is on the verge of agreeing a deal with BAE to build five new Type 26 frigates, with a contract expected to be completed within the next few years.
Sir Simon Lister, managing director of BAE’S naval ships business, said that the company had been in negotiations with the Government for at least the past 18 months.
Sir Simon said: “There’s an intensity that builds towards the end. We’re in the final phase of that negotiation but it hasn’t yet concluded.’
BAE is already constructing three Type 26 ships in Glasgow, under a £3.7bn contract agreed with the Ministry of Defence in 2017. The first ship is expected to be handed over to the Royal Navy in the mid-2020s.
Sir Simon added: “I would say that the Ukrainian invasion has given us all an increased sense of purpose in general. But the intensity of the negotiations was there before. The requirement for this anti-submarine capability predates the Ukrainian invasion and has been felt very strongly in the shipbuilding community and in the Ministry of Defence for some time.”
The main objective of the Type 26 frigates will be to counter Russian submarine threats. The ships have an acoustically quiet hull, which improves their capacity for stealth.
A new prime minister could give the project the green light within months of taking office. Liz Truss, the current front-runner in the race for the premiership, has already pledged to increase defence spending to 3pc of gross domestic product by 2030.
The Ministry of Defence declined to comment.