GEC's Yarrow wins pounds 600m Brunei job


GEC's Yarrow Shipbuilders, on Clydeside, has won a contract to build three patrol vessels for Brunei, thought to be worth about pounds 600m.

The company, struggling under a lack of orders, said the work would help to secure jobs, but was unlikely to stop the 400 redundancies announced in September. "It is a major contract," a spokesman said.

GEC is also awaiting news on a UK order for up to three Type 23 frigates, which may be announced next week. Both GEC and its competitor for the contract, the Solent-based Vosper Thornycroft, have warned about the implication for jobs if they lose the tender.

The Brunei order is for the design, construction, and integration of the weapons system, but several months' work has to carried out on the specifications before building work starts. Delivery of the first vessel is scheduled for the year 2000.

With so few defence contracts around, analysts say that unless GEC wins the forthcoming tender from the Ministry of Defence for frigates it will have to shed more jobs from its 2,500-strong workforce.

Vosper Thornycroft said more than 500 jobs will be lost if it loses the order to Yarrow. James Arbuthnot, Defence Procurement Minister, said: "I am delighted that the UK has won this important order, against strong world-wide competition."

Meanwhile, Mr Arbuthnot yesterday appeared to underline attempts by the Government to forge a new industrial defence strategy that would not just involve European collaboration.

"We are looking, from as early as possible in the life of projects, at every possibility for collaborative procurement not just with Europe but also with the USA," he said.

There had been some concern within parts of the Government that defence procurement was being done solely by links with Europe.

While projects such as Eurofighter and the concept of a European Armament Agency were important, Mr Arbuthnot said the Government could not ignore other parts of the world. "The UK defence industry has a strong foothold in the USA, and there are good opportunities to build on this."

He said the MoD was trying to improve its relationship with the Department of Trade and Industry. Both departments would work more closely in the evaluation of bids.

Start your day with The Independent, sign up for daily news emails
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas