UK Secures £10 billion deal to build warships for Norway

The UK has agreed on a contract worth £10 billion to build warships for Norway.

A Downing Street spokeswoman says the decision marks an "important and historic moment for European security". 

Scottish Secretary Ian Murray said the decision shows the "tremendous success" of Scotland’s shipbuilding industry and is an example of another "defense dividend" for the country.

The warships will be built in Glasgow, the Ministry of Defence announced, with the contract expected to support around 4,000 jobs.

Germany, France, and the United States had offered rival designs for the NATO-member nation.

Type 26 frigates will be constructed at the BAE Systems yard in the Govan area and will allow a fleet of at least 13 anti-submarine ships from the UK and Norway - at least five of which will be Norwegian - to operate jointly in northern Europe as they look to deal with increased Russian activity.

The yard is currently building eight frigates for the Royal Navy.

’Historic moment’

Prime Minister Sir Keir Starmer learned of the decision during a call with his Norwegian counterpart Jonas Gahr Store on Saturday night.

A Downing Street spokeswoman said the decision marks an "important and historic moment for European security". 

The contract is expected to support 2,000 jobs at BAE in the coming years and a further 2,000 in the supply chain into the latter part of the next decade, with 103 Scottish businesses hoped to benefit.

Sir Keir said: "This £10 billion deal is what our Plan for Change is about - creating jobs, driving growth, and protecting national security for working people.

"This government has forged new partnerships across the world to deliver for people at home and the export of our world-leading Type 26 frigates to Norway will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.

"This success is testament to the thousands of people across the country who are not just delivering these next-generation capabilities for our armed forces, but also national security for the UK, our Norwegian partners, and NATO for years to come."

Defence Secretary John Healey said the deal "deepens our strategic partnership" with Norway.

"With Norway, we will train, operate, deter, and - if necessary - fight together," he said.

"Our navies will work as one, leading the way in NATO, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure."

Scottish Secretary Ian Murray said the decision shows the "tremendous success" of Scotland’s shipbuilding industry and is an example of another "defense dividend" for the country.

On behalf of Team UK industry partners, Charles Woodburn, Chief Executive of BAE Systems, said: "The Norwegian Government’s decision reflects its confidence in British industry’s ability to deliver a superior anti-submarine warfare platform, together with systems and equipment, that will support its future maritime security and reinforce its position within NATO. 

"We look forward to playing our part in further strengthening the strategic partnership between the UK and Norway, as we work together with Norwegian industry to deliver this important capability to the Royal Norwegian Navy.