BAE warns Govan yard `needs to win new MoD business'
Related articles
The group was announcing completion of the pounds 2.25m rescue acquisition of Govan from Norway's Kvaerner agreed in July. BAE has agreed a 20 year lease of the land and buildings in a joint deal with the port services group Clydeport, which will own the site. "The Govan yard is helping already with an important order and we know from previous co-operative working arrangements the high quality of output." said BAE'sRod Leggetter. "However, nobody is under any illusions that a critical factor in the shipyard's future is winning new business, in particular the roll-on-roll-off vessels contract for the UK Ministry of Defence."
On Tuesday, the MoD extended until 14 January the time allowed for confirmation of bids for six roll-on-roll-off equipment transport vessels to allow bidders more time. Bids were first submitted in July and a decision had been planned for the autumn. Govan is part of the Sealion consortium, one of four bidders. The MoD said it wanted to ensure maximum value for money and was "keen to ensure that UK shipyards are given every chance to prove their competitiveness".
Govan's fate hangs in the balance as difficult conditions prevail throughout the Scottish shipbuilding industry. The takeover deal agreed in July after talks with the Government lifted a threat over 1,200 jobs because work at the yard was due to run out in the autumn.
The construction and engineering group Kvaerner, which committed itself in April to exiting shipbuilding worldwide, undertook to pay for any redundancies from the yard over the next three and a half years after rejecting an earlier, lower bid.
In a statement confirming completion of the buyout, Kvaerner said it had also sold the Greenock-based diesel engine component manufacturer Kvaerner Kincaid to the Swedish company Scandiaverken. Terms were not disclosed.
-
Emergency landing at Heathrow sparks further controversy over London airport capacity
-
Unrest may spread across Europe, warns Red Cross chief
-
French government seeks to ban extreme right-wing group
-
BNP and EDL accused of attempt to fuel racial hatred after Woolwich terror attack
-
You want to get an Eton scholarship? All you need to do is answer four (not so simple) questions
- 1 What, let gays get married? We must be bonkers
- 2 Rocky Horror star Tim Curry 'suffers major stroke'
- 3 Exclusive: How MI5 blackmails British Muslims
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Making reading fun for kids
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Introducing the 'Get Reading' campaign
Get the latest on The Evening Standard's campaign to get London's children reading.
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Day In a Page
Johnny Marr talks relationships and reunions
In pictures: After the flood
Death becomes her: A very modern mortician
School of chop: Learning the art of butchery
The man who's eaten everywhere
A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?


Comments