103-529: BAE Systems Maritime – Naval Ships is a wholly owned subsidiary company of BAE Systems , specialising in naval surface shipbuilding and combat systems integration . One of three divisions of BAE Systems Maritime , along with BAE Systems Submarines and BAE Systems Maritime – Maritime Services , it is the largest shipbuilding company in the United Kingdom, one of the largest shipbuilders in Europe, and one of
206-456: A joint stock company . In return for a 20% share in the new company BAE Systems transferred ownership of its Airbus plants (known as Airbus UK ) to the new company. Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20% share of Airbus, the possibility was denied by the company. However, on 6 April 2006 it was reported that it was indeed to sell its stake, then "conservatively valued" at £2.4 billion. Due to
309-441: A "core business". On 18 August 2006 Saudi Arabia signed a contract worth £6 billion to £10 billion for 72 Eurofighter Typhoons, to be delivered by BAE Systems. On 10 September 2006 the company was awarded a £2.5 billion contract for the upgrade of 80 Royal Saudi Air Force Tornado IDSs. One of BAE Systems' major aims, as highlighted in the 2005 Annual Report, was the granting of increased technology transfer between
412-530: A "strategic bias" for expansion and investment in the US. The review also confirmed the attractiveness of the land systems sector and, with two acquisitions in 2004 and 2005, BAE moved from a limited land systems supplier to the second largest such company in the world. This shift in strategy was described as "remarkable" by the Financial Times . Between 2008 and early 2011 BAE acquired five cybersecurity companies in
515-464: A concept for a UXV Combatant based on a destroyer hull for the operation of unmanned land, air and sea systems. BAE Systems Maritime inherited the £400 million Khareef -class corvette project from VT Group, which will see three 99 m (324 ft 10 in) ships delivered to the Royal Navy of Oman in 2013–14. BAE Systems Maritime – Naval Ships' yards have also delivered the following in
618-644: A corporate heritage extending back as far as 1834. VT Shipbuilding (formerly Vosper Thornycroft ) owned shipbuilding facilities completed in 2003 within HMNB Portsmouth and a boatyard, VT Halmatic, in Portchester . These facilities were transferred to BVT Surface Fleet, although the VT Halmatic yard was subsequently sold to Trafalgar Wharf , with the Halmatic Small Boats Centre of Excellence moving to
721-560: A deal worth £800 million. The deal was significant because it was a factor in India's decision to finalise a £1 billion order for 66 Hawks in March 2004. Also in July 2003 BAE Systems and Finmeccanica announced their intention to set up three joint venture companies, to be collectively known as Eurosystems . These companies would have pooled the avionics, C4ISTAR and communications businesses of
824-655: A foreign shipyard. The preferred plan is to consolidate shipbuilding onto the Govan site and invest £300m in a new covered "frigate factory" to build the Type 26. BAE Systems Surface Fleet Solutions owns one shipyard on the River Clyde in Glasgow: Scotstoun (formerly Yarrow Shipbuilders Ltd ) and runs the second Govan (formerly Kvaerner Govan , Govan Shipbuilders , Upper Clyde Shipbuilders and Fairfields ), shipyard that have
927-708: A key element of the United Kingdom's nuclear weapons capability. BAE has operated the Holston Army Ammunition Plant in Tennessee, since 1999, and the Radford Army Ammunition Plant in Radford , Virginia since 2012. BAE Systems' biggest markets are the US 44%, UK 20%, Saudi Arabia 11% and Australia 4%, as of 2022. BAE Systems is the main supplier to the UK MoD ; in 2009/2010 BAE Systems companies in
1030-508: A large shipyard will contain many specialised cranes , dry docks , slipways , dust-free warehouses, painting facilities and extremely large areas for fabrication of the ships. After a ship's useful life is over, it makes its final voyage to a ship-breaking yard, often on a beach in South Asia . Historically ship-breaking was carried out in drydock in developed countries, but high wages and environmental regulations have resulted in movement of
1133-432: A major American defence contractor, for £830 million (about US$ 1.4 billion). The 1997 merger of American corporations Boeing and McDonnell Douglas , which followed the formation in 1995 of Lockheed Martin , the world's largest defence contractor, increased the pressure on European defence companies to consolidate. In June 1997, British Aerospace Defence managing director John Weston commented "Europe ...
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#17328552072081236-580: A new facility in Portsmouth Naval Base. BAE Systems Surface Fleet Solutions also operated an additional project management centre at Filton in Bristol, situated close to key stakeholders at MoD Abbey Wood , which was transferred to BVT. The BAE Systems Submarines Shipyard at Barrow-in-Furness was not included in the joint venture, although since January 2011 Submarines and Surface Ships were operationally integrated under BAE Systems Maritime . At
1339-581: A perfect solution." The attraction of MES to British Aerospace was largely its ownership of Tracor, a major American defence contractor. Shipyard A shipyard , also called a dockyard or boatyard , is a place where ships are built and repaired. These can be yachts , military vessels, cruise liners or other cargo or passenger ships. Compared to shipyards, which are sometimes more involved with original construction, dockyards are sometimes more linked with maintenance and basing activities. The terms are routinely used interchangeably, in part because
1442-469: A provider of vehicle and individual armour systems and survivability technologies. BAE Systems (and British Aerospace previously) was a technology partner to the McLaren Formula One team from 1996 to December 2007. The partnership originally focused on McLaren's F1 car's aerodynamics, eventually moving on to carbon fibre techniques, wireless systems and fuel management. BAE Systems' main interest in
1545-434: A sharp increase in interim sales and profits. In August 2023 BAE agreed to acquire the aerospace division of US-based Ball Corporation for $ 5.6 billion in cash (approximately £4.5 billion); this was BAE's largest acquisition up until that point and was completed on 16 February 2024. In October 2023, BAE was awarded a £3.95 billion contract for development work on Aukus-class submarines up to 2028. BAE Systems plays
1648-669: A shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks". In 2000 Matra Marconi Space , a joint BAE Systems/Matra company, was merged with the space division of DASA to form Astrium . On 16 June 2003 BAE sold its 25% share of Astrium for £84 million, however due to the lossmaking status of the company, BAE Systems invested an equal amount for "restructuring". BAE Systems sold its 54% majority share of BAE Systems Canada , an electronics company, in April for CA$ 310 (approx. £197 million as of December 2010). In November 2001,
1751-454: A ship repair, maintenance and marine engineering company, based within HMNB Portsmouth . The new 15-year Terms of Business Agreement with the Ministry of Defence did result in some controversy however. On 30 June 2009, a BVT memo was leaked which suggested that two of the company's three shipyards could be closed following completion of Queen Elizabeth -class carrier construction. In response to
1854-618: A shock profit warning due to cost overruns of the Nimrod MRA4 maritime reconnaissance/attack aircraft and the Astute -class submarine projects. On 19 February 2003 BAE took a charge of £750 million against these projects and the Ministry of Defence (MoD) agreed to pay a further £700 million of the cost. In 2000 the company had taken a £300 million "loss charge" on the Nimrod contract which
1957-521: A significant role in the production of military equipment. In 2017, 98% of BAE Systems' total sales were military related. It plays important roles in military aircraft production. The company's Typhoon fighter is one of the main front line aircraft of the RAF. The company is a major partner in the F-35 Lightning II programme. Its Hawk advanced jet trainer aircraft has been widely exported. In July 2006,
2060-562: Is a British multinational aerospace , defence and information security company, based in London , England. It is the largest manufacturer in Britain as of 2017. It is the largest defence contractor in Europe and the seventh-largest in the world based on applicable 2021 revenues. Its largest operations are in the United Kingdom and in the United States, where its BAE Systems Inc. subsidiary
2163-643: Is competitive, however largely between American firms, while foreign companies are excluded. In December 2005 the MoD published the Defence Industrial Strategy (DIS) which has been widely acknowledged to recognise BAE Systems as the UK's "national champion". The government claimed the DIS would "promote a sustainable industrial base, that retains in the UK those industrial capabilities needed to ensure national security." After
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#17328552072082266-471: Is headquartered at the existing facility in Telford, Shropshire. In August 2020 BAE Systems completed the purchase of United Technologies ' military GPS businesses for $ 1.9 billion and Raytheon 's military airborne radios business for $ 275 million. The sale of these two business was a condition of the merger approval that saw their two parent companies merge to form Raytheon Technologies . In November 2020,
2369-462: Is one of the six largest suppliers to the US Department of Defense . Its next biggest markets are Saudi Arabia, then Australia; other major markets include Canada, Japan, India, Turkey, Qatar, Oman and Sweden. The company was formed on 30 November 1999 by the £ 7.7 billion purchase of and merger of Marconi Electronic Systems (MES), the defence electronics and naval shipbuilding subsidiary of
2472-536: Is supporting three times the number of contractors on less than half the budget of the U.S." European governments wished to see the merger of their defence manufacturers into a single entity, a "European Aerospace and Defence Company". As early as 1995, British Aerospace and the German aerospace and defence company DaimlerChrysler Aerospace (DASA) were said to be keen to create a transnational aerospace and defence company. The two companies envisaged including Aérospatiale,
2575-667: The Echo class , Scott class and the design and production of the smaller Halmatic range of boats such as landing craft , rigid-hulled inflatable boats and rigid buoyant boats . These products include the Lifespan Patrol Vessel , Rigid Raider , Mk 6 Assault Boat and Combat Support Boat types currently in service with the British Armed Forces and other Navies, such as the Jordanian Royal Naval Force and
2678-651: The Ocean -class LPH , the Albion -class LPD and the Bay-class LSD(A)s . BAE's three shipyards all built sections of the Type 45 destroyer , which started as a collaboration between BAE and VT Group. Daring , Dauntless , Diamond , Dragon , Defender and Duncan have all entered service with the Royal Navy . The first of class entered service in May 2009. In 2007 BAE produced
2781-565: The Astute -class submarines, Type 26 frigates and Dreadnought -class submarines. BAE Systems is indirectly engaged in production of nuclear weapons – through its share of MBDA it is involved with the production and support of the ASMP missile, an air-launched nuclear missile which forms part of the French nuclear deterrent . The company is also the UK's only nuclear submarine manufacturer and thus produces
2884-518: The Astute -class submarines, and the Type 26 frigates were all confirmed in the 2010 SDSR. A new generation of nuclear missile submarines, the Dreadnought -class , was ordered in 2016. BAE Systems sold the regional aircraft leasing and asset management arm of its Regional Aircraft business in May 2011. This unit leases the BAe 146 /Avro RJ family, BAe ATP , Jetstream and BAe 748 . The company retained
2987-749: The Brazilian Navy in January 2012 as the Amazonas class. A technology transfer agreement with Bangkok Dock to build a similar 90 m (295 ft 3 in) OPV, HTMS Krabi , for the Royal Thai Navy was agreed in June 2009. In 2014 the Royal Navy company signed a £348m deal for three improved Rivers to keep the company busy until Type 26 construction began using money that would have been paid to BAE anyway under
3090-610: The Comet , the world's first commercial jet airliner; Hawker Siddeley , manufacturer of the Harrier , the world's first VTOL attack aircraft; British Aircraft Corporation , co-manufacturer of the Concorde supersonic transport; Supermarine , manufacturer of the Spitfire ; Yarrow Shipbuilders , builder of the Royal Navy 's first destroyers ; Fairfield Shipbuilding and Engineering Company , builder of
3193-474: The Concorde supersonic airliner with Aérospatiale . British Aerospace was a civil and military aircraft manufacturer, as well as a provider of military land systems. The company had emerged from the massive consolidation of UK aircraft manufacturers since World War II. British Aerospace was formed on 29 April 1977, by the nationalisation and merger of the British Aircraft Corporation (BAC),
BAE Systems Maritime – Naval Ships - Misplaced Pages Continue
3296-591: The Department of Trade and Industry which prevented a reference of the merger to the Monopolies and Mergers Commission . These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries. Another condition was the " firewalling " of former British Aerospace and MES teams on defence projects such as the Joint Strike Fighter (JSF). In 2007
3399-582: The General Electric Company plc (GEC), with British Aerospace , an aircraft, munitions and naval systems manufacturer. BAE Systems is the successor to various aircraft, shipbuilding, armoured vehicle, armaments and defence electronics companies, including the Marconi Company , the first commercial company devoted to the development and use of radio; A.V. Roe and Company , one of the world's first aircraft companies; de Havilland , manufacturer of
3502-531: The Gripen fighter aircraft. In 2005 it reduced this share to 20.5% and in March 2010 announced its intention to sell the remainder. The Times stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft". Several of the export campaigns for the aircraft were subject to allegations of bribery and corruption. The company continued its move into support services in May 2010 with
3605-618: The Hawker Siddeley Group and Scottish Aviation . Both BAC and Hawker Siddeley were themselves the result of various mergers and acquisitions. Marconi Electronic Systems was the defence subsidiary of British engineering firm the General Electric Company (GEC), dealing largely in military systems integration , as well as naval and land systems. Marconi's heritage dates back to Guglielmo Marconi 's Wireless Telegraph & Signal Company, founded in 1897. GEC purchased English Electric (which included Marconi) in 1968 and thereafter used
3708-580: The Kenya Navy . BAE was initially part of a consortium bidding for the Military Afloat Reach and Sustainability (MARS) programme, which was to see up to six replenishment at sea tankers built for the Royal Fleet Auxiliary . BAE was partnered with BMT Defence Services and Daewoo Shipbuilding & Marine Engineering – the eventual winners – for the project, but subsequently withdrew from
3811-657: The Lockheed Martin F-35 Lightning II , the Eurofighter Typhoon , the Astute -class submarine , and the Queen Elizabeth -class aircraft carriers . BAE is listed on the London Stock Exchange 's FTSE 100 Index . British Aerospace bought Marconi Electronic Systems for £7.7 billion on 30 November 1999 and merged with it to form BAE Systems. The company is the successor to many of
3914-489: The Panavia Tornado and Eurofighter Typhoon aircraft projects. Merger discussions began between British Aerospace and DASA in July 1998, just as French participation became more likely with the announcement that Aérospatiale was to merge with Matra and emerge with a diluted French government shareholding. A merger was agreed between British Aerospace chairman Richard Evans and DASA CEO Jürgen Schrempp . Meanwhile, GEC
4017-580: The Republic of Singapore Navy . BAE Systems Maritime's Support services include supply chain management and logistics support. The BAE subsidiary BAE Systems Maritime – Maritime Services provides through life maintenance, ship repair and drydock refit services for naval and merchant vessels. Past projects have included the reactivation of the Upholder class , now reactivated as the Victoria -class submarines for
4120-722: The Royal Canadian Navy . It has also refitted two ex-Royal Navy Type 22 (Batch 2) frigates for the Romanian Naval Forces and a similar programme for the Chilean Navy involving the refurbishment of three ex-Royal Navy Type 23 frigates . In July 2009, BVT Surface Fleet established the Gulf Logistics and Naval Support joint venture with Abu Dhabi Shipbuilding, to provide in-region maritime support services for CCASG member states. BAE Systems BAE Systems plc
4223-527: The TAI TF Kaan aircraft. On 10 October 2017, BAE announced that it would lay off nearly 2,000 out of its approximately 35,000 employees in Britain, mainly due to an order shortage for the Typhoon fighter. In 2019 BAE Systems sold a 55% share of its UK land business to Rheinmetall . The resultant joint venture (JV), Rheinmetall BAE Systems Land (RBSL), was established in July 2019 following regulatory approval and
BAE Systems Maritime – Naval Ships - Misplaced Pages Continue
4326-779: The United Arab Emirates , Ukraine , the United Kingdom , the United States and Vietnam . The shipbuilding industry is more fragmented in Europe than in Asia where countries tend to have fewer, larger companies. Many naval vessels are built or maintained in shipyards owned or operated by the national government or navy. Shipyards are constructed near the sea or tidal rivers to allow easy access for their ships. The United Kingdom , for example, has shipyards on many of its rivers. The site of
4429-512: The evolution of dockyards and shipyards has often caused them to change or merge roles. Countries with large shipbuilding industries include Australia , Brazil , China , Croatia , Denmark , Finland , France , Germany , India , Ireland , Italy , Japan , the Netherlands , Norway , the Philippines , Poland , Romania , Russia , Singapore , South Korea , Sweden , Taiwan , Turkey ,
4532-413: The 1980s to shift the burden of risk to the contractor and were in contrast to "cost plus contracts" where a contractor was paid for the value of its product plus an agreed profit. BAE Systems was operating in "the only truly open defence market", which meant it was competing with US and European companies for British defence projects, while they were protected in their home markets. The US defence market
4635-415: The British government declassified the HERTI (High Endurance Rapid Technology Insertion), an Unmanned Aerial Vehicle (UAV) which can navigate autonomously. It is currently developing a sixth-generation jet fighter aircraft for the RAF marketed as the " Tempest " along with the MoD, Rolls-Royce , Leonardo and MBDA. It is intended to enter service from 2035 replacing the Typhoon aircraft in service with
4738-521: The DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999. Evans stated in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA. The merger created a vertically integrated company which The Scotsman described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability", for example combining
4841-447: The Marconi brand for its defence businesses (as GEC-Marconi and later Marconi Electronic Systems). GEC's own defence heritage dates back to World War I, when its contribution to the war effort included radios and bulbs. World War II consolidated this position, as the company was involved in important technological advances, notably the cavity magnetron for radar . Between 1945 and 1999, GEC-Marconi/Marconi Electronic Systems became one of
4944-446: The MoD announced the award of a 20-year, £2.4 billion munitions contract to BAE. This will see BAE manufacture 39 different munitions for the UK armed forces and supersedes the 2008 MASS contract. In July 2023, BAE received a related £280 million order to address a munitions shortage caused by the supply of ammunition to Ukraine. In 2022, during the Russian invasion of Ukraine , major arms manufacturers, including BAE Systems, reported
5047-399: The RAF. BAE Systems Land and Armaments manufactures the M2/M3 Bradley fighting vehicle family, the US Navy Advanced Gun System (AGS), M113 armoured personnel carrier (APC), M109 Paladin , Archer , M777 howitzer , the British Army's Challenger 2 , Warrior Tracked Armoured Vehicle , Panther Command and Liaison Vehicle , and the SA80 assault rifle . Major naval projects include
5150-489: The Royal Navy, with through-life maintenance the ongoing responsibility of BAE Systems Maritime; initially the company leased them to the UK Ministry of Defence until the MoD found the money to buy them. The company completed three Port of Spain -class OPVs based on the Rivers for the Trinidad and Tobago Defence Force in 2010. After the contract was cancelled by the Trinidad & Tobago government in September 2010, these vessels were subsequently contracted for delivery to
5253-425: The ToBA. BAE Systems Maritime also has a technology transfer agreement in place with Elefsis Shipyards for the construction of the Roussen -class fast attack craft for the Hellenic Navy , which are based on the Barzan (Vita)-class FACs currently in service with the Qatar Armed Forces ; itself based upon Vosper Thornycroft 's 56 m (183 ft 9 in) patrol craft built for the Royal Navy of Oman and
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#17328552072085356-511: The UK Armed Forces' ammunition and required BAE to modernise its munitions manufacturing facilities. BAE Systems expanded its intelligence and security business with the £531 million purchase of Detica Group in July 2008. It continued this strategy with purchases of Danish cyber and intelligence company ETI for approximately $ 210 million in December 2010, and Norkom Group PLC the following month for €217 million. The latter provides counter fraud and anti-money laundering solutions to
5459-428: The UK and Saudi Arabia reached an agreement on an arms package which saw a £1.6 billion contract awarded to BAE for the delivery of 55 Pilatus PC-21 and 22 BAE Systems Hawk aircraft. The Sultanate of Oman ordered Typhoon and Hawk aircraft worth £2.5 billion in December 2012. In September 2012, it was reported that BAE Systems and EADS had entered merger talks which would have seen BAE shareholders own 40% of
5562-447: The UK and the US. The F-35 (JSF) programme became the focus of this effort, with British government ministers such as Lord Drayson , Minister for Defence Procurement , suggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain F-35s independently. On 12 December 2006, Lord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of
5665-407: The UK's naval shipbuilding capability in the long-term. In return, in July 2007 the MoD guaranteed the new company a certain amount of work for 15 years, or to pay penalties instead. The Terms of Business Agreement (ToBA) finally signed in July 2009 promised a minimum level of ship build and support activity of around £230 million/year to sustain a warship industry in the UK. The government could cancel
5768-410: The VT Shipbuilding facilities within the Naval Base at Portsmouth . BAE Systems subsequently acquired VT Group's share of the joint venture on 30 October 2009 and renamed the business BAE Systems Surface Ships Ltd . On 1 January 2011, BAE Systems Surface Ships was operationally integrated with BAE Systems Submarine Solutions to form BAE Systems Maritime. On 1 January 2012, BAE Systems Surface Ships
5871-416: The aircraft. On 22 December 2006 BAE received a £947 million contract to provide guaranteed availability of Royal Air Force (RAF) Tornados. In May 2007 the company announced its subsidiary BAE Systems Inc. was to purchase Armor Holdings for £2.3 billion (approx. US$ 4.5 billion c. 2007) and completed the deal on 31 July 2007. The company was a manufacturer of tactical wheeled vehicles and
5974-406: The ancient Greek city on the Gulf of Corinth, Naupactus , means "shipyard" (combination of the Greek words ναύς naus : "ship, boat"; and πήγνυμι pêgnumi , pegnymi : "builder, fixer"). Naupactus' reputation in this field extended back into legendary times – the site is traditionally identified by Greek authors such as Ephorus and Strabo as the place where a fleet was said to have been built by
6077-447: The company announced the closure of the Avro Regional Jet ( Avro RJ ) production line at Woodford and the cancellation of the Avro RJX, an advanced series of the aircraft family, as the business was "no longer viable". The final Avro RJ to be completed became the last British civil airliner. In November 2001 BAE sold its 49.9% share of Thomson Marconi Sonar to Thales for £85 million. A further step of European defence consolidation
6180-400: The company proceed with the sale. Shareholders voted in favour and the sale was completed on 13 October. This saw the end of UK-owned involvement in civil airliner production. Airbus Operations Ltd (the former Airbus UK) continued to be the Airbus "Centre of Excellence" for wing production, employing over 9,500 in 2007. In February 2010 BAE Systems announced a £592 million writedown of
6283-619: The company's RO Defence unit to form BAE Systems Land Systems. Recognising the lack of scale of this business compared to General Dynamics, BAE Systems executives soon identified the US defence company United Defense Industries (UDI), a major competitor to General Dynamics, as a main acquisition target. On 7 March 2005 BAE announced the £2.25 billion (approx. US$ 4.2 billion c. 2005) acquisition of UDI. UDI, now BAE Systems Land and Armaments , manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions. In December 2005, BAE Systems announced
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#17328552072086386-450: The company's shares. BAE Systems' first annual report identified Airbus, support services to militaries and integrated systems for air, land and naval applications as key areas of growth. It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described 2001 as an "important year" for its European joint ventures, which were reorganised considerably. The company has described
6489-411: The consortium before the final round. BAE Systems had previously been prime contractor on the Wave-class tanker programme for the Royal Fleet Auxiliary. BAE Systems Maritime – Naval Ships' capabilities also extend to Mine countermeasures vessels (The Sandown class in service with the Royal Navy, Royal Saudi Navy and Estonian Navy ), prime contracting on hydrographic survey vessels such as
6592-452: The contribution of Airbus UK. After its creation, BAE Systems had a difficult relationship with the MoD. This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts". CEO Mike Turner said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken". These competition rules were introduced by Lord Levene during
6695-468: The deal at any time, subject to penalties which would decline over the course of the agreement but which would have been £630m at the time of the 2010 SDSR, in lieu of the MoD's existing liability for rationalisation costs under Yellow Book rules. Explaining the rationale for the joint venture from VT Group's perspective, its CEO Paul Lester described shipbuilding as a "lumpy" business, dependent on large contracts placed at irregular intervals. Another issue
6798-476: The former Armor Holdings business following the loss of the Family of Medium Tactical Vehicles contract in 2009. It was outbid by Oshkosh Corporation for the £2.3 billion ($ 3.7 billion) contract. Land and Armaments had been the "star performer" of BAE Systems' subsidiaries, growing from sales of £482 million in 2004 to £6.7 billion in 2009. BAE Systems inherited British Aerospace's 35% share of Saab AB , with which it produced and marketed
6901-400: The global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring. BAE Systems inherited British Aerospace's share of Airbus Industrie, which consisted of two factories at Broughton and Filton . These facilities manufactured wings for the Airbus family of aircraft. In 2001 Airbus was incorporated as Airbus SAS,
7004-505: The government announced that it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances". BAE Systems inherited the UK government-owned "golden" share that was established when British Aerospace was privatised. This unique share prevents amendments of certain parts of the company's Articles of Association without the permission of the Secretary of State. These Articles require that no foreign person or persons acting together may hold more than 15% of
7107-410: The industry to third-world regions. The oldest structure sometimes identified as a dockyard was built c. 2400 BC by the Indus Valley civilisation in the Harappan port city of Lothal (in present-day Gujarat, India ). Lothal's dockyards connected to an ancient course of the Sabarmati river on the trade route between Harappan cities in Sindh and the peninsula of Saurashtra when
7210-418: The latter to Finmeccanica for €400 million (approx. £270 million c. 2007) in March 2007. In May 2004, it was reported that the company was considering selling its shipbuilding divisions, BAE Systems Naval Ships and BAE Systems Submarines . It was understood that General Dynamics wished to acquire the submarine building facilities at Barrow-in-Furness , while VT Group was said to be interested in
7313-403: The leak, BVT said the memo was "worst-case scenario planning" and that it continues to invest in the future of all its yards. However a MOD spokesman said "[the MOD] had to look at the consequences of reduced demand for navy shipbuilding." No firm decisions will be taken until after the Scottish independence referendum in September 2014 as London has made it clear that it would not buy warships from
7416-607: The legendary Heraclidae to invade the Peloponnesus . In the Spanish city of Barcelona , the Drassanes shipyards were active from at least the mid-13th century until the 18th century, although at times they served as a barracks for troops as well as an arsenal. During their time of operation the Drassanes were continuously changed, rebuilt and modified, but two original towers and part of
7519-513: The list of Top 100 suppliers to the MoD received contracts totalling £3.98 billion, with total revenue being higher when other subsidiary income is included. In comparison, the second largest supplier is Babcock International Group and its subsidiaries, with a revenue of £1.1 billion from the MoD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3 billion and paid £2.6 billion in taxes. These figures exclude
7622-606: The loss of 940 jobs, and a further 835 jobs would be lost at Filton, near Bristol, and at the shipyards in Govan, Rosyth, and Scotstoun in Scotland. On 9 October 2014, the company announced the loss of 440 management jobs across the country, with 286 of the job cuts in Lancashire. In July 2014 it announced the acquisition of US intelligence company Signal Innovations Group Inc. to augment imagery and data analysis technologies in its Intelligence & Security business. In August 2014, BAE
7725-537: The manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES's largest customer. In contrast, DASA's response to the breakdown of the merger discussion was to merge with Aérospatiale to create the European Aeronautic Defence and Space Company ( EADS ), a horizontal integration . Seventeen undertakings were given by BAE Systems to
7828-622: The manufacturing stage of the project, BAE announced its intention to finalise the joint venture arrangements with VT Group. This was completed on 11 June 2008 and, following VT Group shareholder approval on 30 June, the joint venture became operational on 1 July. BAE Systems and VT Group owned 55% and 45% of the company respectively, however they had equal board representation and voting rights. In return, VT Group acquired BAE System's 50% share in their other joint venture company Flagship Training, now known as VT Flagship. BVT Surface Fleet subsumed another BAE/VT joint venture, Fleet Support Limited ,
7931-424: The most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the Comet , the world's first commercial jet airliner; the Harrier "jump jet", the world's first operational vertical/short take-off and landing (VTOL) aircraft; the "groundbreaking" Blue Vixen radar carried by Sea Harrier FA2s and which formed the basis of the Eurofighter's CAPTOR radar; and co-produced
8034-626: The original eight construction-naves remain today. The site is currently a maritime museum. From the 14th century, several hundred years before the Industrial Revolution , ships were the first items to be manufactured in a factory – in the Venice Arsenal of the Venetian Republic in present-day Italy . The Arsenal apparently mass-produced nearly one ship every day using pre-manufactured parts and assembly lines . At its height in
8137-444: The other major European aerospace company, but only after its privatisation. The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace, DASA, Aérospatiale and Construcciones Aeronáuticas SA into an integrated company; with this aim British Aerospace and DASA were united against the various objections of Aérospatiale. As well as Airbus, British Aerospace and DASA were partners in
8240-609: The partnership was to learn about the high speed build and operations processes of McLaren. The company announced the acquisition of Tenix Defence , a major Australian defence contractor in January 2008. The purchase was completed on 27 June for A$ 775 million (£373 million) making BAE Systems Australia that country's largest defence contractor. The MoD awarded BAE Systems a 15-year munitions contract in August 2008 worth up to £3 billion, known as Munition Acquisition Supply Solution (MASS). The contract guaranteed supply of 80% of
8343-533: The present-day surrounding Kutch desert formed a part of the Arabian Sea . Lothal engineers accorded high priority to the creation of a dockyard and a warehouse to serve the purposes of maritime trade. The dock was built on the eastern flank of the town, and is regarded by archaeologists as an engineering feat of the highest order. It was located away from the main current of the river to avoid silting, but provided access to ships at high tide as well. The name of
8446-528: The publication of the DIS BAE Systems CEO Mike Turner said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the UK". Lord Levene said in the balance between value for money or maintaining a viable industrial base the DIS "tries as well as it can to steer a middle course and to achieve as much as it can in both directions. ...We will never have
8549-544: The purchase of the marine support company Atlantic Marine for $ 352 million. In September 2010 BAE Systems announced plans to sell the Platform Solutions division of BAE Systems Inc., which the Financial Times estimated could yield as much as £1.3 billion. Despite "considerable expressions of interest", the sale was abandoned in January 2011. The purchases of Queen Elizabeth -class aircraft carriers ,
8652-563: The rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe." When Dick Olver was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed
8755-452: The recent past: Design work is currently underway on the Type 26 frigate project for the Royal Navy, as part of the wider Global Combat Ship programme, which will eventually replace the Type 23 frigates currently in service. Construction of the first of class, HMS Glasgow, started on 20 July 2017 with first steel being cut in the Govan shipyard. VT Shipbuilding was responsible for the construction of four River-class patrol vessels for
8858-507: The remaining yards on the Clyde . Instead, in 2008 BAE Systems merged its Surface Fleet arm with the shipbuilding operations of VT Group to form BVT Surface Fleet , an aim central to the British Government's Defence Industrial Strategy . On 4 June 2004, BAE Systems outbid General Dynamics for Alvis Vickers , the UK's main manufacturer of armoured vehicles. Alvis Vickers was merged with
8961-597: The resulting organisation. On 10 October 2012, the companies said the merger talks had been called off. The Guardian reported that this was due to the German Government's concern about the "potential size of the French shareholding in the combined company, as well as disagreements over the location of the group's headquarters". In November 2013, BAE Systems announced that shipbuilding would cease in Portsmouth in 2014 with
9064-493: The sale of its German naval systems subsidiary, Atlas Elektronik, to ThyssenKrupp and EADS. The Financial Times described the sale as "cut price" because French company Thales bid €300 million, but was blocked from purchasing Atlas by the German government on national security grounds. On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to Spirit AeroSystems, Inc. , having said as early as 2002 that it wished to dispose of what it did not regard as
9167-568: The sale of its share in BVT to BAE Systems were therefore £303 million. BAE Systems Maritime is undertaking a majority of the workload for the two Queen Elizabeth -class aircraft carriers, the first of which was floated off in July 2014 and is now in commission. As part of the Aircraft Carrier Alliance , Thales and Babcock were also involved in the project. The company's shipyards also constructed large amphibious assault ships , including
9270-511: The slow pace of informal negotiations, BAE Systems exercised its put option which saw investment bank Rothschild appointed to give an independent valuation. Six days after this process began, Airbus announced delays to the A380 with significant effects on the value of Airbus shares. On 2 June 2006 Rothschild valued the company's share at £1.87 billion, well below its own analysts' and even EADS's expectations. The BAE Systems board recommended that
9373-399: The support and engineering activities of the business. In September 2011, BAE Systems began consultation with unions and workers over plans to cut nearly 3,000 jobs, mostly in the company's military aircraft division. In its 2012 half-year report, the company revealed a 10% decline in revenue in the six months up to 30 June due to falling demand for armaments. In May 2012 the governments of
9476-603: The time of BVT's creation, VT Group was expected to eventually sell its minority share to BAE Systems through a put option , but not within three years. However, on 28 January 2009 VT Group announced its intention to sell its share. VT Group's put option valued its share at a minimum of £380 million subject to conditions; however it received £346 million after various payments to BAE. In addition, VT Group agreed to pay £43 million compensation to BVT for cost overruns on contracts with Trinidad & Tobago and Oman that BVT had inherited from VT Shipbuilding. VT Group's net proceeds from
9579-449: The two companies. However the difficulties of integrating the companies in this way led to a re-evaluation of the proposal; BAE Systems' 2004 Annual Report states that "recognising the complexity of the earlier proposed Eurosystems transaction with Finmeccanica we have moved to a simpler model". The main part of this deal was the dissolution of AMS and the establishment of SELEX Sensors and Airborne Systems ; BAE Systems sold its 25% share of
9682-463: The world's first battlecruiser ; and Vickers Shipbuilding and Engineering , builder of the Royal Navy's first submarines . Since its 1999 formation, BAE Systems has made a number of acquisitions, most notably of United Defense and Armor Holdings of the United States, and has sold its shares in Airbus , Astrium , AMS and Atlas Elektronik . It is involved in several major defence projects, including
9785-527: The world's largest builders of complex warships. It was originally formed as a joint stock subsidiary on 1 July 2008, with the merger of BAE Systems Surface Fleet Solutions and VT Shipbuilding , creating a new firm named BVT Surface Fleet . The new firm incorporated the BAE Systems Surface Fleet Solutions operated shipyards at Scotstoun and Govan on the River Clyde in Glasgow and
9888-436: The world's most important defence contractors . GEC's major defence related acquisitions included Associated Electrical Industries in 1967, Yarrow Shipbuilders in 1985, Plessey companies in 1989, parts of Ferranti 's defence business in 1990, the rump of Ferranti when it went into receivership in 1993/1994, Vickers Shipbuilding and Engineering in 1995 and Kværner Govan in 1999. In June 1998, MES acquired Tracor ,
9991-491: Was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, The Independent said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations." When GEC put MES up for sale on 22 December 1998, British Aerospace abandoned
10094-631: Was awarded a £248 million contract from the British government to build three new offshore patrol vessels . In October 2014, BAE Systems won a £600 million contract from the MoD to maintain Portsmouth naval base for five years. During 2014 BAE Systems acquired US-based cybersecurity firm Silversky for $ 232.5 million. During Prime Minister Theresa May 's visit to Turkey in January 2017, BAE and TAI officials signed an agreement, worth about £100 million, for BAE to provide assistance in developing
10197-496: Was expected to cover "all the costs of completion of the current contract". The troubled Nimrod project would ultimately be cancelled as part of the 2010 Strategic Defence and Security Review (SDSR). The UK government, following a cabinet row described as "one of the most bitter Cabinet disputes over defence contracts since the Westland helicopter affair in 1985", ordered 20 BAE Hawk trainer aircraft with 24 options in July 2003 in
10300-410: Was formally restructured and rebranded as BAE Systems Maritime – Naval Ships and BAE Systems Maritime – Maritime Services, the former incorporating the shipbuilding operations and combat systems development and the latter in-service support. The Ministry of Defence's (MOD) 2005 Defence Industrial Strategy encouraged BAE and VT Group to form a naval shipbuilding joint venture with the aim of maintaining
10403-468: Was in takeover discussions with TRW , an American aerospace, automotive and defence business. This was prompted by Northrop Grumman 's £4.1 billion (approx. US$ 6 billion c. 2002) hostile bid for TRW in February 2002. A bidding war between BAE Systems, Northrop and General Dynamics ended on 1 June when Northrop's increased bid of £5.1 billion was accepted. On 11 December 2002, BAE Systems issued
10506-464: Was the competition between VT and BAE: "We don't want to get into a dogfight with BAE over who would be the survivor... That's what you'd be talking about at some stage." BAE and VT concluded the merger discussions in early 2008, however creation of BVT Surface Fleet was conditional on the signing of contracts for the Queen Elizabeth -class aircraft carriers. Following the Ministry of Defence's announcement on 20 May 2008 that it intended to proceed with
10609-456: Was the merger of BAE's share of Matra BAe Dynamics and the missile division of Alenia Marconi Systems (AMS) into MBDA in December. MBDA thus became the world's second largest missile manufacturer. Although EADS (now Airbus SE ) was later reported to be interested in acquiring full control of MBDA, BAE said that, unlike Airbus, MBDA is a "core business". In June 2002, BAE Systems confirmed it
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