Three British shipbuilding companies have won a Royal Navy contract worth £1bn ($1.31bn). The three companies are Cammell Laird, A&P Group Ltd, and UK Docks Ltd. The contracts will support hundreds of jobs for the next ten years.
Royal Navy contract – A&P Group Ltd
A&P is the UK’s largest ship repair and conversion company. It has shipyards in Middlesbrough, Falmouth, and Hebburn. It has secured a £239 million FISS contract from the MoD for Bay Clay vessels. FISS stands for Future In-Service Support, and MoD stands for Ministry of Defence.
The Bay Clay vessels are RFA Argus, RFA Lyme Bay, RFA Cardigan Bay, RFA Mounts Bay, and Ocean Survey Vessel HMS Scott.
A&P Falmouth will deliver the contract. A&P describes its Falmouth shipyard as a “centre of excellence for the through-life support of RFA Argus and the Bay Class vessels.”
Royal Navy contract – Cammell Laird
Cammell Laird is a British shipbuilding company that employs approximately 650 workers. The company has won two 10-year contracts worth £619 million. The Royal Navy contract is to support the Royal Fleet Auxiliary (RFA).
In a press release, Cammell Laird wrote:
“(The contract) is a massive boost for the company and will enable it to continue to invest in its workforce, apprenticeship programme and infrastructure.”
Winning the Royal Navy contract will sustain over three-hundred jobs at the company and in the supply chain. It will also create over 100 apprenticeships.
John Syvret, Cammell Laird’s CEO (Chief Executive Officer), said this new deal will see investment growth over the next decade.
Royal Navy contract – UK Docs Ltd
UK Docks Ltd on Tyneside won a £150 million contract. The shipyard will support the ice patrol ship HMS Protector, and the survey ships HMS Echo and Enterprise.
Supporting over 700 jobs for a decade
The new £1bn to support the Royal Navy operations will support more than 700 British jobs for a decade, says the MoD.
Stuart Andrew, Defence Minister, said:
“This £1bn deal secures work for some of our world-leading shipyards into the next decade, supporting over 700 jobs for workers to ensure our ships remain at sea to defend the nation.”
“This vital work is not only great news for our Navy, but also underlines the importance of defence to our national skills and prosperity.”
The MoD says the deal is expected to deliver savings worth more than £100 million for defence.