Scotland business

BAE Systems in £200m Scotstoun shipyard tender move

BAE Scotstoun Image copyright Reuters
Image caption BAE is looking to expand the shipbuilding capacity of its Scotstoun yard in Glasgow

Proposals for a new £200m shipyard facility at Scotstoun in Glasgow are to be put out to tender next week, BAE Systems has announced.

The move is one of two options outlined by the company for its Govan and Scotstoun shipyards earlier this year.

The option of a £200m single-site manufacturing facility at Scotstoun would mean closing the Govan shipyard.

The other £100m option would see existing facilities at both sites expanded and improved.

Planning applications have been lodged for both proposals, although BAE has indicated that it prefers the single-site option.

While BAE owns Scotstoun and runs its administration, design and supply chain operations from its offices, Govan is leased from Clydeport. The lease there runs out in 2019.

A BAE Systems spokeswoman said: "In February we unveiled two proposals which are still under way and being progressed.

"The tender for Scotstoun will be going out shortly as part of the process."

Scotstoun option

The single-site option at Scotstoun would include building a new 330m covered dock hall, steelwork preparation and fabrication facilities and a quay, which would enable ship blocks and equipment to be transported by sea.

Construction under this option would be expected to begin in January and continue until 2017.

If this option were chosen, there would be discussions with Clydeport and stakeholders about options for the future of the Govan yard.

Shipbuilding operations would continue there until 2018 through the existing MoD aircraft carrier programme and construction of three offshore patrol vessels for the Royal Navy.

In a statement, BAE Systems said: "We continue to explore two options for manufacturing facilities investment in Glasgow, subject to MoD agreement.

"The first, a single-site strategy, involves consolidating all phases of the build process at Scotstoun where a new state-of-the-art complex warship manufacturing facility would be built.

"The second, a two-site strategy, involves extending and improving existing facilities at both Govan and Scotstoun.

"The construction of a new facility, as proposed under the single-site option, would have a longer lead time than upgrading existing facilities as proposed under the two-site option, hence the tender process for the single-site option has commenced earlier."

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