BAE VT merger
05 May 2009
BAE Systems and VT Group in the UK are poised to sign a ground-breaking joint-venture agreement to merge their shipyards into a national champion. The new entity, to be called BVT Surface Fleet Ltd, will be the largest shipbuilder in the UK. Industry sources said the agreement could be signed in the next week.
The deal, which still requires approval from VT's shareholders, will combine VT's Portsmouth yard and BAE's yards at Govan and Scotstoun on the Clyde. BVT will become the Government's strategic partner for the design, manufacture and support of future warships through a 15-year partnering agreement.
Signature of the joint venture will lead to the Ministry of Defence placing a manufacturing contract for two new aircraft carriers for the Royal Navy. The ships will be assembled at Babcock's shipyard in Rosyth, in Fife. Under the latest design proposals for the aircraft carriers, vessels will displace up to 65,000 tonnes and measure 920ft in length with flight decks up to 242ft wide. Some 40% of the work for the ships will be put out for competitive tendering. The rest has already been allocated to major players in the project.
The deal, which still requires approval from VT's shareholders, will combine VT's Portsmouth yard and BAE's yards at Govan and Scotstoun on the Clyde. BVT will become the Government's strategic partner for the design, manufacture and support of future warships through a 15-year partnering agreement.
Signature of the joint venture will lead to the Ministry of Defence placing a manufacturing contract for two new aircraft carriers for the Royal Navy. The ships will be assembled at Babcock's shipyard in Rosyth, in Fife. Under the latest design proposals for the aircraft carriers, vessels will displace up to 65,000 tonnes and measure 920ft in length with flight decks up to 242ft wide. Some 40% of the work for the ships will be put out for competitive tendering. The rest has already been allocated to major players in the project.
