£10 billion boost expected to support 103 Scottish businesses including 54 small and medium enterprises
- Major partnership with Norway set to secure 2,000 jobs in Scotland until the late 2030s with a further 2,000 roles sustained across the wider UK supply chain.
- Deal will see a combined fleet of 13 Anti-Submarine Warfare frigates – eight British and at least five Norwegian – operate jointly in Northern Europe, significantly strengthening NATO’s northern flank
BILLIONS of pounds will be pumped into the Scottish economy following Norway’s decision to select Glasgow-built warships for their Armed Forces – securing thousands of jobs in Scotland for years to come.
The UK will supply Norway with Type 26 frigates in a historic deal worth £10 billion announced today, cementing Scotland’s position as a world leader in naval shipbuilding, and on the government’s Plan for Change.
The deal supports 2,000 jobs at BAE Systems’ shipyards in Glasgow and a further 2,000 roles across the UK maritime supply chain until the late 2030s. The agreement is expected to support 103 Scottish businesses which includes 54 small and medium enterprises
Norway’s selection of the UK’s world leading Type 26 frigates builds on decades of close cooperation between NATO allies and strengthens both nations’ strategic partnership and maritime security in the face of increasing Russian threats in northern Europe. Both Australia and Canada have also bought a licence to build their own ships based on the Type 26 design for their Navies.
Prime Minister Keir Starmer said: “This £10 billion deal is what our Plan for Change is about – creating jobs, driving growth and protecting national security for working people.
“This government has forged new partnerships across the world to deliver for people at home and the export of our world leading Type 26 frigates to Norway will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.
“This success is testament to the thousands of people across the country who are not just delivering this next generation capabilities for our Armed Forces but also national security for the UK, our Norwegian partners and NATO for years to come.”
Scottish Secretary Ian Murray said: “Norway’s decision to choose Scottish-built frigates demonstrates the tremendous success of our shipbuilding industry and showcases the world-class skills and expertise of our workforce on the Clyde.
“This contract is another ‘defence dividend’ for Scotland and supports thousands of jobs and reinforces Scotland’s vital contribution to both UK prosperity and international security. The deal demonstrates that when we back Scottish industry, it delivers for communities, workers, and our allies.”
Defence Secretary, John Healey MP said: “For over 75 years, Britain and Norway have stood together on NATO’s northern and north-eastern frontiers, keeping the UK and Europe safe. This historic defence deal deepens our strategic partnership.
“With Norway, we will train, operate, deter, and – if necessary – fight together. Our navies will work as one, leading the way in NATO, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure.
“This deal confirms Scotland’s place as a world leader in shipbuilding. It will support 2,000 high-skilled jobs in Scotland for the next 15 years and beyond, driving forward this Government’s Plan for Change and making defence an engine for growth.”
The frigates are designed for anti-submarine warfare – strengthening the strategic partnership and maritime security of both nations in the face of increasing Russian threats in northern Europe.
The decision comes ahead of a new UK-Norway defence agreement that will bolster Euro-Atlantic security while bringing the two defence industries closer together to boost jobs, growth, and innovation.
