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BAE wins MoD carrier contract

20/05/2008

The Ministry of Defence has given the go ahead for two super aircraft carriers to be built by BAE Systems and VT Group.

The warships, which will be the biggest ever made in the UK, will secure around 10,000 jobs.

In all, the MoD is investing £14 billion in the Navy over the next ten to 15 years, the government said.

Defence secretary Des Browne said: "The two aircraft carriers will provide our front line forces with the modern, world-class capabilities they will need over the coming decades. They will support peace-keeping and conflict prevention as well as our strategic operational priorities."

The 65,000-tonne carriers – HMS Queen Elizabeth and HMS Prince of Wales – will enter service in 2014 and 2016, respectively.

Once in service, they are expected to remain in the fleet for up to 50 years.

The ships will be built as a joint venture between BAE Systems and VT Group. Construction and assembly of the new carriers will take place at shipyards in Portsmouth, Barrow-in-Furness, Glasgow and Rosyth.

BAE chief executive Mike Turner said: "The programme will provide a strong order book and forward workload over the coming years and, most importantly will provide our armed forces with significantly enhanced capability."

BAE is currently embroiled in an investigation into alleged briberies in the 1980s relating to a deal made with the Saudi government.

Mr Turner and non-executive director Sir Nigel Rudd where served with subpoenas while visiting the US this week.