MoD carrier decision welcomed
Partners in waiting BAE Systems and VT Group have both welcomed yesterday’s announcement by the Ministry of Defence that it intends to proceed to the manufacturing stage in the project to build two new 65,000 tonne aircraft carriers (CVF) for the Royal Navy.
The move will enable BAE Systems and VT Group to progress finalisation of the arrangements for BVT Surface Fleet, the Joint Venture (JV) combining their shipbuilding and naval support businesses, following the framework agreement signed in July 2007. BAE Systems and VT Group expect the JV transaction documentation to be signed shortly. The agreement will then be subject to VT shareholder approval.
BAE chief executive Mike Turner said: “This is an important milestone in the development of the CVF programme and plays a major part in the long term sustainability of the UK naval sector and the transformation of our business. The programme will provide a strong order book and forward workload over the coming years and, most importantly will provide our armed forces with significantly enhanced capability.”
