Positive news aiding forward visibility 

HMS Glasgow undergoing fitting out on the Clyde

The UK Ministry of Defence has awarded BAE Systems a £4.2 billion contract to build the next five Type 26 City‑class frigates in Glasgow. The programme secures more than 4,000 jobs across BAE Systems and the wider UK maritime supply chain, with an estimated £1.8 billion flowing into suppliers; £1.2 billion of which will go to UK‑based firms.

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This contract secures a critical UK industry and allows us to build on our long history of shipbuilding on the Clyde as we continue to deliver cutting-edge equipment to the Royal Navy into the next decade. It underpins the ongoing investments we’re making in the skills, infrastructure and technologies needed to stay at the forefront of the maritime sector and to support the UK Government’s National Shipbuilding Strategy. Charles Woodburn, Chief Executive, BAE Systems

The Type 26 frigate is primarily designed as an advanced anti‑submarine warfare (ASW) platform. The ship is constructed with a low‑acoustic‑signature hull and propulsion to avoid detection by submarines and is equipped with advanced sonar systems for submarine detection including a towed array sonar and a bow mounted sonar.

Three ships are already under construction, with HMS Glasgow expected to enter the water later this year, followed by HMS Cardiff and HMS Belfast. HMS Glasgow and HMS Cardiff are currently being fitted out and hull integration is currently underay for HMS Belfast.

The Type 26 programme now spans the entire UK industrial base, with more than 120 domestic suppliers already engaged across the latest batch of frigates. Key contributions include steering systems manufactured in Dunfermline, gas‑turbine components from Filton, and specialised maritime lighting produced in Cumbria.

Workforce expansion continues in parallel. Over the past year, 180 apprentices have joined the 400 already assigned to the programme, while BAE Systems’ Naval Ships division—employing roughly 4,500 people nationwide—is in the process of hiring an additional 400 skilled trades staff to support the increasing workload.

To reinforce long‑term capability, the company is committing around £15 million to establish a new Applied Shipbuilding Academy in Glasgow, designed to develop talent across all levels of the organisation. BAE Systems has also submitted plans for a new shipbuilding hall on the Clyde, an investment exceeding £100 million, intended to significantly raise productivity and underpin delivery of the current eight‑ship order book as well as future programmes.

International adoption of the Type 26 design continues to broaden the programme’s strategic footprint. Australia and Canada have both selected the class for their own fleets, creating a combined pipeline of approximately 32 ships across the three nations. This trilateral alignment enables shared learning in construction, integration, and entry‑into‑service processes, strengthening outcomes for all participating navies.

BAE Systems CEO Charles Woodburn emphasised the contract’s role in reinforcing the UK’s shipbuilding base and supporting long‑term investment in skills, infrastructure, and technology. More than 120 UK suppliers are currently engaged in the programme, providing key systems such as steering gear, gas turbines, and maritime lighting.

Workforce development remains a priority: BAE has added 180 apprentices this year, with plans to hire 400 additional skilled tradespeople. The company is investing £15 million in a new Applied Shipbuilding Academy in Glasgow and seeking approval for a £100 million shipbuilding hall to boost productivity and support future orders.

This is great news for the UK, Scotland and Glasgow as BAE and Babcock drive a renaissance in ship building in Scotland. It is just an embarrassment that Ferguson Ship Yard don't seem to be able to build a simple little ferry on time and on budget.

The author owns shares in BAE.