MOD SELECTS BAE SYSTEMS AS UK AIRCRAFT CARRIER PRIME CONTRACTOR

The UK Ministry of Defence has chosen BAE SYSTEMS as the Prime Contractor for the design, development, construction, systems integration and support of the UK Royal Navy's two new aircraft carriers, as announced by the Secretary of State for Defence, Geoff Hoon.

These two new flagships will be the largest warships ever ordered and ever constructed in the United Kingdom. This will also be the largest single naval procurement, production and support programme which the UK has seen in more than 50 years, with an overall government budget of £10 billion through a service life of up to 50 years.

As a result of the size and complexity of the programme, BAE SYSTEMS' approach throughout the competition has been based on collaboration with key partners in UK and US industry. The MOD has chosen the Thales team's carrier concept design, and BAE SYSTEMS welcomes Thales as a key supplier, who will bring many strengths to the programme. The approach the MOD is taking in the next stage will capitalise on the significant work done thus far in the competition by both teams.

BAE SYSTEMS, Thales and the MOD will now engage in discussions to determine the detail for the structure of the proposed alliance. In parallel, that team will ensure that critical elements of the design work continue to move forward, so that the programme remains on schedule.

Chris Geoghegan, Chief Operating Officer, BAE SYSTEMS, said "We are delighted that BAE SYSTEMS has been chosen to be Prime Contractor for Britain's biggest ever warship contract, the next generation Carrier. We will be taking responsibility for the design and integration of the highly complex systems, as well as for the construction and support of a vital British naval system expected to be in service for the next 50 years.�

"Our task now is to work with the MoD to bring together the best industrial capability Britain can offer. We look forward to working with key suppliers, including Thales, to deliver to the Royal Navy a world class sea system, vital for the protection of our national interest."

Nigel Stewart, BAE SYSTEMS Future Carrier Managing Director, said "Our collaborative approach throughout has been consistent, as a project of this size and complexity can only succeed through partnership and collaboration. We have secured robust relationships with industrial partners. We are looking forward to building on our current relationships with Thales and all the other supplier companies, continuing the excellent working relationship we have with the MOD and the Royal Navy customer on this very important programme.

Key to this team's success will be devising a successful approach to the rest of this programme, and the excellence of the major suppliers chosen.

"The MOD cited our clear understanding of the programme and our excellent relationship with our UK shipbuilding partners as key influencing factors in their decision. We are going to build on those, and the new team's expertise, to form up around the MOD and get on with building these formidable warships for the Royal Navy.�