BAE reviews the future of its shipyards

Fears grow that consultants may recommend that defence group closes Glasgow or Portsmouth dock

Defence giant BAE Systems has drafted in management consultants to examine the future of its historic shipyards in Glasgow and Portsmouth, creating fears that thousands of jobs could be at risk.

LEK Consulting is understood to be reviewing all potential options for the BAE Systems Surface Ships division, including shutting one of the three shipyards – there are two 19th-century sites very close to each other on the River Clyde in Scotland.

BAE will be keen to impress that the options have not been fully assessed, as it is already under fire for making 899 people redundant at its Brough plant in North Yorkshire, which manufactures Hawk Advanced Jet Trainer.

The company has been forced to look at the future of the shipyards as the £5bn contract for two 65,000-tonne super-carrier warships draws to a close. The ships are due to launch in 2018 – most work would be completed sooner - and there are fears that subsequent Ministry of Defence programmes will not be enough to keep the yards' 7,000 employees busy.

An defence industry source said: "It looks like there would only be enough regular work for one shipyard [the Glasgow bases or Portsmouth] from three or four years time."

However, LEK is also thought to be looking at internationalising the business to help BAE win work overseas. Alternatively, the MoD could step in and help fund the yards.

The source ruled out a straight sale as a likely option. He said: "Who would buy them? There's no one to sell it to [in the current market]."

LEK's thinking could be muddied if Scottish First Minister Alex Salmond pushes ahead with a referendum on the nation's future. British warships are unlikely to be built in Scotland should Scots vote for independence.

However, a second source suggested there could be some hope with the forthcoming Type 26 Global Combat Ship programme. BAE is already designing the ships, which will be built at the rate of one per year from 2020.

The FTSE 100 company, led by chief executive Ian King, is no stranger to controversy. In 2010, BAE paid fines totalling nearly £286m in the UK and US, after pleading guilty to charges of imperfect accounting practices and false statements in relation to contracts in Tanzania and Saudi Arabia.

A BAE spokeswoman said: "LEK are working with us. We do bring in consultants to work with us from time to time. This is analytical modelling to support normal business planning activity."

News
In 2006, Pluto was reclassified as a 'dwarf planet'
scienceBut will it be reinstated?
News
Destructive discourse: Jewish boys look at anti-Semitic graffiti sprayed on to the walls of the synagogue in March 2006, near Tel Aviv
news

As anti-Semitic attacks rise, Grant Feller re-evaluates his identity

Arts and Entertainment
Adam Levine plays a butcher who obsessively stalks a woman in Maroon 5's 'Animals' music video
music'Animals' video 'promotes sexual violence against women'
News
people Biographer says cinema’s enduring sex symbol led a secret troubled life
PROMOTED VIDEO
News
newsGlobal index has ranked the quality of life for OAPs - but the UK didn't even make it into the top 10
News
people

Kirstie Allsopp has waded into the female fertility debate again

News
The moon observed in visible light, topography and the GRAIL gravity gradients
science

...and it wasn't caused by an asteroid crash, as first thought

News
people
Life and Style
food and drink

Savoury patisserie is a thing now

News
Researchers say a diet of fatty foods could impede smell abilities
scienceMeasuring the sense may predict a person's lifespan
News
ebooksAn unforgettable anthology of contemporary reportage
Sport
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style
News
news

Meet the primary school where every day is National Poetry Day

News
Gillian Anderson was paid less than her male co-star David Duchovny for three years while she was in the The X-Files until she protested and was given the same salary
people

Gillian Anderson lays into gender disparity in Hollywood

News
peopleStella McCartney apologises over controversial Instagram picture
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?