Babcock: British defence giant signs nuclear submarine deal worth half-a-billion pounds
In an update to markets this morning, the FTSE 250-listed company announced it had penned a contract worth £560m with UK's Submarine Delivery Agency (SDA).
British defence giant Babcock International has signed a mega-deal worth more than half-a-billion pounds to maintain UK submarines.
In an update to markets this morning, the FTSE 250-listed company announced it had penned a contract worth £560m with UK’s Submarine Delivery Agency (SDA).
The deal will mean Babcock is responsible for “the planned deep maintenance and life extension programme for HMS Victorious, one of the UK’s Vanguard Class nuclear submarines.”
As part of the deal, Babcock will work on the nuclear sub and deliver it back to the Royal Navy in a “modernised and improved” state, allowing it to continue patrols, into the next decade.
The announcement said work is already underway following a commitment by the department to start work in July last year.
More than 1,000 will be sustained in the southwest of England, while Babcock will continue to “build its workforce” at its Plymouth site.
This comes after a test of the UK’s nuclear deterrent, the Trident missile system, failed twice in a row, causing concern amongst the defence establishment.
Britain has been seen to be flexing its muscles in the last two years, including engaging in nuclear testing and Nato training, amid rising global tensions, and in particular, in response to the war in Ukraine.
This rise in global tensions has helped Babcock’s share price boom by 48 per cent in the past year, alongside other defence and arms manufacturers, such as BAE Systems.
Defence Secretary, Grant Shapps said: “In an increasingly dangerous world, it is crucial that we continue to invest in one of our most important assets, our nuclear deterrent.
“This is another UK partnership with Babcock, that will help keep the UK safe while boosting the local economy and supporting 1,000 jobs.
Babcock CEO David Lockwood said: “Delivering the programme for this vital and complex defence asset is our top priority. We are proud to have been awarded this complex defence programme which will use our deep engineering expertise to help keep the UK safe.”
Second Sea Lord Vice Admiral Martin Connell said: “”The overhaul of HMS Victorious will allow the boat to carry out deterrent patrols until the next generation of submarines, the Dreadnought-class, enter service.”
