BAE Systems Maritime – Naval Ships: Difference between revisions

{{Use dmy dates|date=SeptemberMay 20132024}}

| name = BAE Systems Maritime – Naval Ships

| logo = BAE Systems logo.svg

| logo_size = 180px

| type = [[PrivatePrivately held company limited by shares|Private]]

| predecessor = [[BAE Systems Surface Fleet Solutions]]<br />[[Vosper Thornycroft|VT Shipbuilding]]

| foundation = 1 July 2008 (as BVT Surface Fleet)<ref>{{cite news|title = Warship deal takes a step closer |work = BBC News |publisher=BBC|date = 1 July 2008}}</ref><ref name="operational"/>

| location_city = [[Glasgow]]

| location_country = Scotland, UK

| area_served = =

| key_people = [[Sir John Parker]] – Chairman (2008–2009)<ref name="manag"/><br /> Alan Johnston [[CBE]] – CEO (2008–2011)<ref name="manag"/><br />Iain Stevenson – managing director (2016–Present2016–2019)/><br />Steve Timms - Managing Director (2019–2021)/><br />Sir Simon Lister - Managing Director (2021–Present)

Heather Lee- HR director (2018-present2018–present)Engineering Director Paul Feely(2016-Present2016–Present) Shipbuild Director David Goodfellow (2003-Present2003–2011)

| industry = [[Arms industry|Defence]]<br />[[Shipbuilding]]<br />[[Naval architecture|Marine engineering]]

| products = [[Naval ship|Naval vessels]]

| services = [[Naval architecture|Ship design]]<br />Ship support

| revenue = £1.12 Billion (FY 2008/09)<ref>[http://www.baesystems.com/Newsroom/NewsReleases/autoGen_10910914233.html BAE Systems – Warship Business Gives Boost to UK Economy]</ref>

| operating_income = £45 Million<ref name="defenseindustrydaily.com">[http://www.defenseindustrydaily.com/bae-vt-group-create-uk-surface-ship-jv-03528/ BAE & VT Group Finalize, then Dissolve, UK Surface Ship JV]</ref>

| net_income = =

| assets = £352 Million<ref name="defenseindustrydaily.com"/>

| equity = =

| num_employees = Approximately 7,000

| parent = [[BAE Systems|BAE Systems Maritime]]

| divisions = =

| subsid = =

| homepage = [http://www.baesystems.com/Businesses/SurfaceShips/index.htm www.baesystems.com]

| footnotes = =

'''BAE Systems Maritime – Naval Ships''' is a wholly owned subsidiary company of [[BAE Systems plc]], specialising in [[Naval ship|naval]] [[Surface ship|surface]] [[shipbuilding]] and [[Systems integrator|combat systems integration]]. One of three divisions of '''BAE Systems Maritime''', along with [[BAE Systems Submarine Solutions|BAE Systems Maritime – Submarines]] and [[BAE 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.<ref>[http://heritage.scotsman.com/shipbuilding/VT-makes-its-final-shipyard.4924364.jp The Scotsman - VT makes its final shipyard departure with £300m sale]</ref>

It was originally formed as a [[Joint stock company|joint stock]] subsidiary on 1 July 2008, with the merger of BAE Systems Surface Fleet Solutions and [[VT Group|VT Shipbuilding]], creating a new firm named '''BVT Surface Fleet'''.

The Ministry of Defence's (MOD) 2005 [[Defence 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.<ref>{{cite news |last = O'Connell|first = Dominic |title = UK naval yards get 15-year jobs vow|work = Sunday Times|pages = 2|publisher = Times Newspapers |date = 29 July 2007|accessdateaccess-date =19 August 2014 | url=http://www.thesundaytimes.co.uk/sto/business/article68767.ece | archive-url=https://web.archive.org/web/20140819083751/http://www.thesundaytimes.co.uk/sto/business/article68767.ece | url-status=dead | archive-date=19 August 2014 }}</ref><ref name="plesterondeal">{{cite news| last = Webb|first = Tim|title = Abandon ships and sail on: As VT Group and BAE Systems merge shipbuilding arms, the US army and the BBC will occupy Paul Lester|work = The Observer|pages = 7|publisher = Guardian Newspapers| date = 16 December 2007| url = https://www.theguardian.com/business/2007/dec/16/vtgroup.armstrade| accessdateaccess-date =1 July 2008 | location=London}}</ref> 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.<ref name=PAC20110215>{{cite web | url=https://publications.parliament.uk/pa/cm201011/cmselect/cmpubacc/687/687we05.htm | title=The Major Projects Report 2010 - Public Accounts Committee - Supplementary written evidence from the Ministry of Defence | publisher=UK Parliament | date=15 February 2011 | accessdateaccess-date=2014-08-19}}</ref> 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,<ref name=PAC20110215 /> in lieu of the MoD's existing liability for rationalisation costs under Yellow Book rules.<ref>The Yellow Book, formally known as ''The Government Profit Formula and its Associated Arrangements'', is an agreement between the Treasury and CBI governing single-source defence contracts. The MoD is liable for restructuring and redundancy costs when such contracts are cancelled or completed</ref>

BAE and VT concluded the merger discussions in early 2008, however creation of BVT Surface Fleet was conditional on the signing of contracts for the {{sclass-|Queen Elizabeth|aircraft carrier|0}} aircraft carriers.<ref>{{cite news| last = Barker| first = Alex|author2=Pfeifer, Sylvia| title = Navy's aircraft carriers face delay| work = Financial Times| pages = 2| date = 21 February 2008 }}</ref> 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.<ref>{{cite press release

|title = BAE Systems welcomes the MOD carrier announcement |publisher = BAE Systems plc|date = 20 May 2008|url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_10842010345.html|accessdateaccess-date = 1 July 2008}}</ref> This was completed on 11 June 2008 and, following VT Group shareholder approval on 30 June, the joint venture became operational on 1 July.<ref name="operational">{{cite press release| title = BVT Surface Fleet Joint Venture becomes operational| publisher = BAE Systems plc| date = 30 June 2008| url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_108530122154.html| accessdateaccess-date =1 July 2008}}</ref><ref name="manag">{{cite news|last =Jameson|first =Angela|title = VT Group and BAE Systems agree merger to build warships|url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4114698.ece|archive-url=https://web.archive.org/web/20110612055854/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4114698.ece|url-status=dead|archive-date=12 June 2011|work = The Times|publisher = Times Newspapers|date = 11 June 2008|accessdateaccess-date =1 July 2008 | location=London}}</ref>

BAE Systems and [[VT Group]] owned 55% and 45% of the company respectively, however they had equal board representation and voting rights.<ref>{{cite press release| title = VT Group and BAE Systems to create a world-class provider of naval ships and through life support| publisher = VT Group plc| date = 25 July 2007| url = http://www.vtplc.com/Display.aspx?MasterId=70345562-2677-43d9-adfe-777a6293d9f7&NavigationId=996| accessdateaccess-date = 1 July 2008}}{{Dead link|date=August 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

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 of ''Queen Elizabeth''-class carrier construction.<ref>{{cite news |first=Andrew |last=Bolger|title=Move to ease fears of shipyard closures |work=Financial Times|date=2 July 2009 |accessdateaccess-date=4 July 2009 |url=http://www.ft.com/cms/s/0/fbddd3b8-669e-11de-a034-00144feabdc0.html }}</ref><ref name="bbcmemo">{{cite news |title=Two navy shipyards 'could close' |work=BBC News |date=30 June 2009 |accessdateaccess-date=4 July 2009|url= http://news.bbc.co.uk/1/hi/scotland/8127743.stm}}</ref> 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."<ref name="bbcmemo"/> 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.

[[File:Ship launch at BAE Systems, Scotstoun - geograph.org.uk - 148892.jpg|thumb|[[Ship naming and launching|Launch]] of a {{sclass-|Nakhoda Ragam|corvette|1}} from the covered berths at BAE's Scotstoun Shipyard in Glasgow.]]

BAE Systems Surface Fleet Solutions ownedowns twoone [[shipyard]]s on the [[River Clyde]] in Glasgow: [[Scotstoun]] (formerly [[Yarrow Shipbuilders Ltd]]) and runs the second [[Govan]] (formerly [[Kvaerner Govan]], [[Govan Shipbuilders]], [[Upper Clyde Shipbuilders]] and [[Fairfield Shipbuilding and Engineering Company|Fairfields]]), shipyardsshipyard that have a corporate heritage extending back as far as 1834. VT Shipbuilding (formerly [[Vosper Thornycroft]]) owned shipbuilding facilities completed in 2003 within [[HMNB Portsmouth]] and a boatyard, VT Halmatic, in [[Portchester]]. These facilities were transferred to BVT Surface Fleet, although the VT Halmatic yard was subsequently sold to [[Trafalgar Wharf, Portchester, Portsmouth|Trafalgar 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 at [[Filton]] in Bristol, situated close to key stakeholders at [[MoD Abbey Wood]], which was transferred to BVT.

The [[BAE Systems Submarine SolutionsSubmarines]] Shipyard at [[Barrow-in-Furness]] was not included in the joint venture, although since January 2011 Submarines and Surface Ships were operationally integrated under '''BAE Systems Maritime'''.

At the time of BVT's creation, VT Group was expected to eventually sell its minority share to BAE Systems through a [[put option]], but not within three years.<ref name="saleFT">{{cite news|last = Griggs|first = Tom|title = VT Group confident of contract wins|work = Financial Times|pages = 23|date = 14 November 2007}}</ref><ref name="saleST">{{cite news|last =O'Connell|first =Dominic|title = Ceasefire in battle of the naval dockyards|work = Sunday Times|pages = 13|publisher = Times Newspapers|date = 16 December 2007 }}</ref><ref>{{cite web |url=http://ir.baesystems.com/investors/news/regulatory/rnsitem?id=1185369327nRNSY8498A |title=BAE Systems announces agreement with VT Group |accessdateaccess-date=28 January 2009 |publisher=BAE Systems plc |date=25 July 2007 }}{{Dead link|date=May 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> However, on 28 January 2009 VT Group announced its intention to sell its share.<ref name="vtsells">{{cite news |first=Paul|last=Sandle |author2=Hepher, Tim |title=VT Group to sell stake in shipbuilding JV to BAE|url= https://www.theguardian.com/business/feedarticle/8331028 |agency=Reuters |work=The Guardian |publisher=Guardian Newspapers|date=28 January 2008 |accessdateaccess-date=28 January 2009 |language= |quote= | location=London}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> VT Group's put option valued its share at a minimum of £380&nbsp;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.<ref>{{cite news|first=Jonathan |last=Buck |title=VT Group Seals Deal To Sell BVT Stake To BAE Systems |url=https://www.wsj.com/article/BT-CO-20090924-703897.html |newspaper=Wall Street Journal |accessdateaccess-date=25 September 2009 |url-status=dead |archiveurlarchive-url=https://web.archive.org/web/20091004091749/http://online.wsj.com/article/BT-CO-20090924-703897.html |archivedatearchive-date=4 October 2009 }}</ref>

BAE Systems Maritime is undertaking a majority of the workload for the two {{sclass-|Queen Elizabeth|aircraft carrier|0}} aircraft carriers, the first of which was floated off in July 2014 and is now undergoing seain trialscommission. As part of the [[Aircraft Carrier Alliance]], [[Thales Group|Thales]] and [[Babcock International Group|Babcock]] arewere also involved in the project.<ref>{{cite web

|title = CVF – Royal Navy Future Aircraft Carrier, United Kingdom|work = www.naval-technology.com|publisher = SPG Media Limited|year = 2008|url = http://www.naval-technology.com/projects/cvf/|accessdateaccess-date =1 July 2008 }}</ref> The company's shipyards havealso previously had experience of constructingconstructed large [[amphibious assault ships]], including the [[HMS Ocean (L12)|''Ocean''-class LPH]], the [[Albion-class landing platform dock|''Albion''-class LPD]] and the [[Bay-class landing ship dock|Bay-class LSD(A)]]s.

BAE Systems Maritime inherited the £400&nbsp;million [[Khareef-class corvette|''Khareef''-class corvette project]] from VT Group, which will see three {{convert|99|m|ftin|abbr=on}} ships delivered to the [[Royal Navy of Oman]]<ref>{{cite news |first=Richard |last=Scott|title= VT clinches Khareef OPV deal with Oman |work=Janes Defence Weekly |publisher=The New York Times Company |date=24 January 2007 }}</ref> in 2013-142013–14.

* {{sclass-|Nakhoda Ragam|corvette|1}}s to the [[Royal Brunei Navy]] ([[Indonesian Navy]] from 2013)

* {{sclass-|Qahir|corvette|1}}s to the [[Royal Navy of Oman]]

* {{sclass-|Lekiu|frigate|1}} for the [[Royal Malaysian Navy]]

Design work is currently underway on the [[Global Combat Ship|Type 26 frigate]] project for the Royal Navy, as part of the wider [[Future Surface Combatant (Royal Navy)|Global Combat Ship]] programme, which will eventually replace the [[Type 23 frigate|Type 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.<ref>{{cite news |url=https://www.bbc.co.uk/news/uk-scotland-glasgow-west-40660677|title=First Type 26 frigate named HMS Glasgow |work=BBC |accessdateaccess-date=20 July 2017|date=20 July 2017 }}</ref>

VT Shipbuilding was responsible for the construction of four {{sclass2-|River|patrol vessel|1}}s for the Royal Navy, with through-life maintenance the ongoing responsibility of BAE Systems Maritime; initially the company leased them to the UK [[Ministry of Defence (United Kingdom)|Ministry of Defence]] until the MoD found the money to buy them. The company completed three {{sclass-|Port of Spain|corvette|0}} [[Patrol vessel|OPV]]s based on the Rivers for the [[Trinidad 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 the [[Brazilian Navy]] in January 2012 as the ''Amazonas'' class. A [[technology transfer]] agreement with Bangkok Dock to build a similar {{convert|90|m|ftin|abbr=on}} OPV, {{ship|HTMS|Krabi}}, for the [[Royal Thai Navy]] was agreed in June 2009.<ref>[http://thaimilitary.wordpress.com/2009/09/10/rtn-yet-another-opv-from-bvt-surface-fleet-and-more-of-t-994-996/ BVT wins Thailand design contract]</ref> 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 with [[Elefsis Shipyards]] for the construction of the {{sclass-|Roussen|fast attack craft|1}} for the [[Hellenic Navy]], which are based on the ''Barzan'' (Vita)-class FACs currently in service with the [[Qatar Armed Forces]]; itself based upon [[Vosper Thornycroft]]'s {{convert|56|m|ftin|abbr=on}} patrol craft built for the [[Royal Navy of Oman]] and the [[Kenya Navy]].

BAE was initially part of a consortium bidding for the [[MARS tanker|Military Afloat Reach and Sustainability]] (MARS) programme, which was to see up to six [[Underway replenishment|replenishment at sea]] tankers built for the [[Royal Fleet Auxiliary]]. BAE was partnered with [[BMT Limited|BMT Defence Services]] and [[Daewoo Shipbuilding & Marine Engineering]] – the eventual winners – for the project, but subsequently withdrew from the consortium before the final round.<ref>{{cite press release |title = BAE Systems to partner with BMT and DSME for MARS fleet tankers|publisher = BAE Systems plc|date = 15 February 2008|url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_108115104252.html|accessdateaccess-date =1 July 2008 }}</ref>

BAE Systems had previously been prime contractor on the {{sclass2-|Wave|tanker|1}} programme for the Royal Fleet Auxiliary.

BAE Systems Maritime – Naval Ships' capabilities also extend to [[Mine countermeasures vessel]]s (The {{sclass-|Sandown|minehunter|4}} in service with the Royal Navy, [[Royal Saudi Navy]] and [[Estonian Navy]]), [[General contractor|prime contracting]] on [[hydrographic survey]] vessels such as the {{sclass-|Echo|survey ship (2002)|4}}, [[HMS Scott (H131)|''Scott'' class]] and the design and production of the smaller Halmatic range of boats such as [[landing craft]], [[rigid-hulled inflatable boat]]s and [[rigid buoyant boat]]s. These products include the [[Scimitar-class patrol vessel|Lifespan Patrol Vessel]], [[Rigid Raider]], [[Mk 6 Assault Boat]] and [[Combat Support Boat]] types currently in service with the [[British Armed Forces]] and other Navies, such as the Jordanian [[Royal Naval Force]] and the [[Republic of Singapore Navy]].<ref>{{cite web|url=http://www.bvtsurfacefleet.com/bvt/products/ |title=BVT Surface Fleet – Products |accessdateaccess-date=1 July 2008 |work=www.bvtsurfacefleet.com |publisher=BVT Surface Fleet |url-status=dead |archiveurlarchive-url=https://web.archive.org/web/20080714203051/http://www.bvtsurfacefleet.com/bvt/products/ |archivedatearchive-date=14 July 2008 |df=dmy }}</ref>

*[[BAE Systems Maritime - Submarines]] (2012–present)