REG - Babcock Intnl Group - Babcock signs £750 million infrastructure contract

Babcock InternationalAnnouncement

10/11/2023 12:00

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RNS Number : 1205T  Babcock International Group PLC  10 November 2023

10 November 2023

 

Babcock International Group PLC

 

Babcock signs £750 million infrastructure contract

Contract to deliver future submarine capability at Devonport

Babcock International Group PLC ("Babcock" or "the Group"), the international
defence company, has signed a four-year £750 million contract with the UK
Ministry of Defence's (MOD) Submarine Delivery Agency (SDA), to deliver the
infrastructure required to support and sustain the UK's submarines for decades
to come.

As part of the major infrastructure programme underway at the Devonport site,
Babcock will deliver substantial upgrades to existing infrastructure that will
support the future capability of the Royal Navy and the UK's Defence Nuclear
Enterprise.

The contract for the delivery of infrastructure to support submarine
maintenance includes a dock, logistics and modern support facilities, and
underpins the wider role Babcock plays in sustaining the entirety of the UK
submarine fleet.

Crucial to the UK submarine programme, the contract forms part of the
site-wide infrastructure upgrade programme at Devonport to enable the ongoing
delivery of base maintenance periods and deep maintenance projects for current
and future classes of submarine, including nuclear defuel.

Defence Secretary, Grant Shapps, said: "Maintaining the infrastructure that
supports our world-leading submarine fleet is crucial.

"Delivering on our government's priority to grow the UK economy, this
significant investment will create and sustain more than a thousand UK jobs in
the south-west, providing vital improvements to the dockyard that will be
critical to ensuring our Royal Navy can continue to protect the UK and our
Allies."

Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency said: "Investing
in our vital submarine maintenance facilities in the Defence Nuclear
Enterprise at Devonport is critical to our National Security. I am delighted
to have placed the construction contract with Babcock for the delivery of dock
and infrastructure for our Attack Submarine deep maintenance projects later
this decade. This will ensure we deliver available and capable submarines for
the Royal Navy to operate in defence of our Nation."

David Lockwood, Babcock's Chief Executive, said: "The work we deliver in
sustaining the entirety of the UK's submarine fleet is critical. This
investment will ensure that we are able to continue to deliver the complex
maintenance and life-extension programmes we undertake to ensure our Royal
Navy can continue to go to sea safely, and able to deliver their important
work in protecting our nation."

The construction programme is one of the largest of its kind and highlights
the MOD's investment being made at the Devonport site, the skills and
capability this brings to the city and region, and the ongoing commitment to
protect our nation.  The major infrastructure programme will see a further
1,000 construction roles created as the construction phase of the programme
continues to ramp up over the coming year.

Supporting Babcock on 10 Dock are delivery partners Costain and Mott
Macdonald, and main works contractor Kier BAM, bringing world-class
infrastructure delivery experience to this important programme.

ENDS

 

For further information:

 

Andrew Gollan, Babcock Director of Investor
Relations               +44 (0)7936 039 004

Kate Hill, Babcock Group Director of
Communications                +44 (0)20 7355 5312

Olivia Peters / Harry Cameron, Teneo
              +44 (0)20 7353 4200

 

 

 

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