Babcock International Group PLC Contract Award (4847M)
13 October 2016 - 11:14PM
UK Regulatory
TIDMBAB
RNS Number : 4847M
Babcock International Group PLC
13 October 2016
13 October 2016
Babcock International Group PLC (Babcock or the Group)
Babcock awarded contract by General Dynamics Electric Boat
Babcock International Group announced today that it has been
awarded a competitive contract from General Dynamics Electric Boat
to manufacture 22 tactical missile tube assemblies as part of the
common missile compartment (CMC) project for the UK Successor and
US Ohio Class replacement submarine programmes. This work is part
of the second phase of the project and places Babcock as a critical
supplier of missile tube assemblies.
Beginning towards the end of 2016 and expected to complete in
the early 2020s, with further opportunities expected from future
batches, the work will be carried out at Babcock's facilities at
Rosyth and Bristol, sustaining around 150 positions created in the
first phase. The contract for this batch of CMC components is
expected to be worth around GBP80 million.
Babcock Chief Executive Archie Bethel said:
"We are delighted to be continuing to support these
internationally significant programmes with our highly specialised
and experienced teams and look forward to working closely with our
customer as this programme continues to develop further over the
coming years.
"Supporting Electric Boat with the CMC project for the future
submarines also underpins our wider involvement in the UK Successor
programme where we have already secured the supply of other
critical equipment and are also heavily involved in the design
phase with a focus on the overall through life performance and
operational cost of the future platforms."
UK Defence Minister Harriett Baldwin said:
"I am delighted that Babcock have secured this critically
important project. This contract is a strong endorsement of our
highly skilled and globally competitive defence industry and will
secure around 150 jobs in Rosyth. With Faslane set to be home of
all the Royal Navy's submarines by 2020, this is further evidence
of the benefits that defence brings to the economy and to
Scotland.
"It is this kind of British expertise that will see the
Successor programme deliver billions of pounds of investment across
the UK, sustaining thousands of jobs from Scotland to the South of
England."
Ends
Enquiries
Babcock International Group
PLC 020 7355 5300
Franco Martinelli
Kate Hill
FTI Consulting 020 3727 1340
Nick Hasell
This information is provided by RNS
The company news service from the London Stock Exchange
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