The latest decision from
UK to procure from BAE Systems the first batch of Type 26 frigates
has given a momentum to the company's bid to deliver the platform to
the Royal Australian Navy (RAN) in fulfilling its requirement for
future frigate.
Glyn Philips, the chief
executive, BAE Systems Australia, stated that the new contract means
the proposal from the company for the RAN will be de-risked
significantly by way of support provided by the “live programme”
from the UK.
He also stated that the
RAN programme will also be beneficial due to technological
advancements and wider growth margins.
Contracts worth USD 4.8
billion has been signed by UK with BAE Systems on June 29 under which
construction of the first three of the eight ships that have been
planned will be carried out.
The production of these
three frigates will be started by BAE System later this month in
Glasgow, Scotland. Contract for the five ships in the second batch is
expected to be negotiated by the UK in the early 2020s.
The schedule of
construction coincides with the requirement from RAN for nine
frigates under Project SEO 5000. Construction of these vessels has
been planned to start in 2020, and will be based at Osborne, South
Australia.
Source: Janes
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