Babcock International Group PLC Babcock signs GBP750 million infrastructure contract (1205T)
10 November 2023 - 11:00PM
UK Regulatory
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RNS Number : 1205T
Babcock International Group PLC
10 November 2023
10 November 2023
Babcock International Group PLC
Babcock signs GBP750 million infrastructure contract
Contract to deliver future submarine capability at Devonport
Babcock International Group PLC ("Babcock" or "the Group"), the
international defence company, has signed a four-year GBP750
million contract with the UK Ministry of Defence's (MOD) Submarine
Delivery Agency (SDA), to deliver the infrastructure required to
support and sustain the UK's submarines for decades to come.
As part of the major infrastructure programme underway at the
Devonport site, Babcock will deliver substantial upgrades to
existing infrastructure that will support the future capability of
the Royal Navy and the UK's Defence Nuclear Enterprise.
The contract for the delivery of infrastructure to support
submarine maintenance includes a dock, logistics and modern support
facilities, and underpins the wider role Babcock plays in
sustaining the entirety of the UK submarine fleet.
Crucial to the UK submarine programme, the contract forms part
of the site-wide infrastructure upgrade programme at Devonport to
enable the ongoing delivery of base maintenance periods and deep
maintenance projects for current and future classes of submarine,
including nuclear defuel.
Defence Secretary, Grant Shapps, said: "Maintaining the
infrastructure that supports our world-leading submarine fleet is
crucial.
"Delivering on our government's priority to grow the UK economy,
this significant investment will create and sustain more than a
thousand UK jobs in the south-west, providing vital improvements to
the dockyard that will be critical to ensuring our Royal Navy can
continue to protect the UK and our Allies."
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency
said: "Investing in our vital submarine maintenance facilities in
the Defence Nuclear Enterprise at Devonport is critical to our
National Security. I am delighted to have placed the construction
contract with Babcock for the delivery of dock and infrastructure
for our Attack Submarine deep maintenance projects later this
decade. This will ensure we deliver available and capable
submarines for the Royal Navy to operate in defence of our
Nation."
David Lockwood, Babcock's Chief Executive, said: "The work we
deliver in sustaining the entirety of the UK's submarine fleet is
critical. This investment will ensure that we are able to continue
to deliver the complex maintenance and life-extension programmes we
undertake to ensure our Royal Navy can continue to go to sea
safely, and able to deliver their important work in protecting our
nation."
The construction programme is one of the largest of its kind and
highlights the MOD's investment being made at the Devonport site,
the skills and capability this brings to the city and region, and
the ongoing commitment to protect our nation. The major
infrastructure programme will see a further 1,000 construction
roles created as the construction phase of the programme continues
to ramp up over the coming year.
Supporting Babcock on 10 Dock are delivery partners Costain and
Mott Macdonald, and main works contractor Kier BAM, bringing
world-class infrastructure delivery experience to this important
programme.
ENDS
For further information:
Andrew Gollan, Babcock Director of Investor Relations +44 (0)7936 039 004
Kate Hill, Babcock Group Director of Communications +44 (0)20 7355 5312
Olivia Peters / Harry Cameron, Teneo +44 (0)20 7353 4200
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END
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