Scottish independence raises questions over BAE’s new Navy contract

BAE Systems reveals £348m contract to build Navy warships but looming Scottish referendum raises questions over where they will be built

The new vessels are based on the vessels sold to Brazil, pictured

BAE Systems has won a £348m contract to build three Royal Navy warships at the company’s Glasgow shipyards that highlights the potential problems a “Yes” vote for Scottish independence could pose for the defence group.
The Ministry of Defence has ordered the 300ft offshore patrol vessels (OPVs) for use in counter-terrorism and anti-smuggling operations in a deal that will secure 800 jobs north of the border and maintain shipbuilding skills in the UK. The first vessel is scheduled for delivery in 2017.
BAE last year decided to end ship construction at the Navy’s historic home of Portsmouth with the loss of 940 jobs and concentrate its operations in Scotland.
Should the country vote to break away from the UK in the September 18 vote, the FTSE 100 group could face difficult decisions on where it will build the ships.
Defence Secretary Michael Fallon said: “UK warships are only built in UK shipyards.
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