 | |
| Company type | Private |
|---|---|
| Industry | Defence Shipbuilding Marine engineering |
| Predecessor | BAE Systems Surface Fleet Solutions VT Shipbuilding |
| Founded | 1 July 2008 (as BVT Surface Fleet)[1][2] |
| Headquarters | , Scotland, UK |
Key people | Sir John Parker – Chairman (2008–2009)[3] Alan JohnstonCBE – CEO (2008–2011)[3] Iain Stevenson – managing director (2016–2019)/> Steve Timms - Managing Director (2019–2021)/> Sir Simon Lister - Managing Director (2021–Present)Heather Lee- HR director (2018–present)Engineering Director Paul Feely(2016–Present) Shipbuild Director David Goodfellow (2003–2011) |
| Products | Naval vessels |
| Services | Ship design Ship support |
| Revenue | £1.12 Billion (FY 2008/09)[4] |
| £45 Million[5] | |
| Total assets | £352 Million[5] |
Number of employees | Approximately 7,000 |
| Parent | BAE Systems Maritime |
| Website | www.baesystems.com |
BAE Systems Maritime – Naval Ships is a wholly owned subsidiary company ofBAE Systems, specialising innavalsurfaceshipbuilding andcombat systems integration. One of three divisions ofBAE Systems Maritime, along withBAE Systems Submarines andBAE Systems Maritime – Maritime Services, it is the largest shipbuilding company in the United Kingdom, one of the largest shipbuilders in Europe, and one of the world's largest builders of complex warships.[6]
It was originally formed as ajoint stock subsidiary on 1 July 2008, with the merger of BAE Systems Surface Fleet Solutions andVT Shipbuilding, creating a new firm namedBVT Surface Fleet.
The new firm incorporated the BAE Systems Surface Fleet Solutions operatedshipyards atScotstoun andGovan on theRiver Clyde in Glasgow and the VT Shipbuilding facilities within theNaval Base atPortsmouth.
BAE Systems subsequently acquired VT Group's share of the joint venture on 30 October 2009 and renamed the businessBAE Systems Surface Ships Ltd.
On 1 January 2011, BAE Systems Surface Ships was operationally integrated with BAE Systems Submarine Solutions to form BAE Systems Maritime. On 1 January 2012, BAE Systems Surface Ships was formally restructured and rebranded as BAE Systems Maritime – Naval Ships and BAE Systems Maritime – Maritime Services, the former incorporating the shipbuilding operations and combat systems development and the latter in-service support.[7]
The Ministry of Defence's (MOD) 2005Defence 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.[8][9] 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.[10] 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,[10] in lieu of the MoD's existing liability for rationalisation costs under Yellow Book rules.[11]
Explaining the rationale for the joint venture from VT Group's perspective, its CEOPaul 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."[9]
BAE and VT concluded the merger discussions in early 2008, however creation of BVT Surface Fleet was conditional on the signing of contracts for theQueen Elizabeth-class aircraft carriers.[12] 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.[13] This was completed on 11 June 2008 and, following VT Group shareholder approval on 30 June, the joint venture became operational on 1 July.[2][3]
BAE Systems andVT Group owned 55% and 45% of the company respectively, however they had equal board representation and voting rights.[14]
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 withinHMNB 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 ofQueen Elizabeth-class carrier construction.[15][16] 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."[16] No firm decisions will be taken until after the Scottish independence referendum in September 2014 as London has made it clear that it would not buy warships from a foreign shipyard. The preferred plan is to consolidate shipbuilding onto the Govan site and invest £300m in a new covered "frigate factory" to build the Type 26.
BAE Systems Surface Fleet Solutions owns oneshipyard on theRiver Clyde in Glasgow:Scotstoun (formerlyYarrow Shipbuilders Ltd) and runs the secondGovan (formerlyKvaerner Govan,Govan Shipbuilders,Upper Clyde Shipbuilders andFairfields), shipyard that have a corporate heritage extending back as far as 1834. VT Shipbuilding (formerlyVosper Thornycroft) owned shipbuilding facilities completed in 2003 withinHMNB Portsmouth and a boatyard, VT Halmatic, inPortchester. These facilities were transferred to BVT Surface Fleet, although the VT Halmatic yard was subsequently sold toTrafalgar Wharf, with the Halmatic Small Boats Centre of Excellence moving to a new facility in Portsmouth Naval Base.
BAE Systems Surface Fleet Solutions also operated an additional project management centre atFilton in Bristol, situated close to key stakeholders atMoD Abbey Wood, which was transferred to BVT.
TheBAE Systems Submarines Shipyard atBarrow-in-Furness was not included in the joint venture, although since January 2011 Submarines and Surface Ships were operationally integrated underBAE Systems Maritime.
At the time of BVT's creation, VT Group was expected to eventually sell its minority share to BAE Systems through aput option, but not within three years.[17][18][19] However, on 28 January 2009 VT Group announced its intention to sell its share.[20] 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.[21]
BAE Systems Maritime is undertaking a majority of the workload for the twoQueen Elizabeth-class aircraft carriers, the first of which was floated off in July 2014 and is now in commission. As part of theAircraft Carrier Alliance,Thales andBabcock were also involved in the project.[22] The company's shipyards also constructed largeamphibious assault ships, including theOcean-class LPH, theAlbion-class LPD and theBay-class LSD(A)s.
BAE's three shipyards all built sections of theType 45 destroyer, which started as a collaboration between BAE and VT Group.Daring,Dauntless,Diamond,Dragon,Defender andDuncan have all entered service with theRoyal Navy. The first of class entered service in May 2009.
In 2007 BAE produced a concept for aUXV Combatant based on a destroyer hull for the operation of unmanned land, air and sea systems.[23]
BAE Systems Maritime inherited the £400 millionKhareef-class corvette project from VT Group, which will see three 99 m (324 ft 10 in) ships delivered to theRoyal Navy of Oman[24] in 2013–14.
BAE Systems Maritime – Naval Ships' yards have also delivered the following in the recent past:
Design work is currently underway on theType 26 frigate project for the Royal Navy, as part of the widerGlobal Combat Ship programme, which will eventually replace theType 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.[25]
VT Shipbuilding was responsible for the construction of fourRiver-class patrol vessels for the Royal Navy, with through-life maintenance the ongoing responsibility of BAE Systems Maritime; initially the company leased them to the UKMinistry of Defence until the MoD found the money to buy them. The company completed threePort of Spain-classOPVs based on the Rivers for theTrinidad 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 theBrazilian Navy in January 2012 as theAmazonas class. Atechnology transfer agreement with Bangkok Dock to build a similar 90 m (295 ft 3 in) OPV,HTMS Krabi, for theRoyal Thai Navy was agreed in June 2009.[26] 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 withElefsis Shipyards for the construction of theRoussen-class fast attack craft for theHellenic Navy, which are based on theBarzan (Vita)-class FACs currently in service with theQatar Armed Forces; itself based uponVosper Thornycroft's 56 m (183 ft 9 in) patrol craft built for theRoyal Navy of Oman and theKenya Navy.
BAE was initially part of a consortium bidding for theMilitary Afloat Reach and Sustainability (MARS) programme, which was to see up to sixreplenishment at sea tankers built for theRoyal Fleet Auxiliary. BAE was partnered withBMT Defence Services andDaewoo Shipbuilding & Marine Engineering – the eventual winners – for the project, but subsequently withdrew from the consortium before the final round.[27]
BAE Systems had previously been prime contractor on theWave-class tanker programme for the Royal Fleet Auxiliary.
BAE Systems Maritime – Naval Ships' capabilities also extend toMine countermeasures vessels (TheSandown class in service with the Royal Navy,Royal Saudi Navy andEstonian Navy),prime contracting onhydrographic survey vessels such as theEcho class,Scott class and the design and production of the smaller Halmatic range of boats such aslanding craft,rigid-hulled inflatable boats andrigid buoyant boats. These products include theLifespan Patrol Vessel,Rigid Raider,Mk 6 Assault Boat andCombat Support Boat types currently in service with theBritish Armed Forces and other Navies, such as the JordanianRoyal Naval Force and theRepublic of Singapore Navy.[28]
BAE Systems Maritime's Support services includesupply chain management and logistics support. The BAE subsidiaryBAE Systems Maritime – Maritime Services provides through life maintenance, ship repair anddrydock refit services for naval and merchant vessels.
Past projects have included the reactivation of theUpholder class, now reactivated as theVictoria-class submarines for theRoyal Canadian Navy. It has also refitted two ex-Royal NavyType 22 (Batch 2) frigates for theRomanian Naval Forces and a similar programme for theChilean Navy involving the refurbishment of three ex-Royal NavyType 23 frigates.
In July 2009, BVT Surface Fleet established the Gulf Logistics and Naval Support joint venture withAbu Dhabi Shipbuilding, to provide in-region maritime support services forCCASG member states.
Shipyards of theClyde | |
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| Subsidiaries and divisions | |
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| Joint ventures |
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