Yahoo Finance Defence giant awarded £560m to extend the life of UK nuclear submarine
Babcock has agreed a £560m contract to extend the life of one of Britain’s nuclear-armed submarines.
The FTSE 250 defence giant on Friday confirmed the deal with the Ministry of Defence, following an initial agreement last year.
It involves Babcock carrying out a major refit of HMS Victorious at its vast dockyard in Devonport, Plymouth, where a host of navy vessels go for servicing.
HMS Victorious sailed to Devonport last summer and work has already begun on her multi-year refit.
Babcock has said the overhaul will extend the sub’s lifetime by 15 years or more, ensuring she remains operational well into the 2030s.
Vice Admiral Martin Connell, the Second Sea Lord, said the refit would mean HMS Victorious remained able to carry out her duties until the next generation of nuclear-armed subs, known as the Dreadnought class, are ready to take over.
Grant Shapps, the Defence Secretary, added: “In an increasingly dangerous world, it is crucial that we continue to invest in one of our most important assets, our nuclear deterrent.”
HMS Victorious is one of the Royal Navy’s four Vanguard class submarines, which carry Trident ballistic missiles as part of the UK’s continuous at-sea nuclear deterrent.
One boat is always on patrol, poised to strike in the event of a nuclear conflict.
Because of the critical job they do and their need for stealth, keeping the vessels in top working order is essential.
By the time of their planned retirement, the four subs will have been operational for around 40 years after HMS Vanguard was commissioned into service in 1993, followed by HMS Victorious in 1995, HMS Vigilant in 1996 and finally HMS Vengeance in 1999.
HMS Vanguard has already been refitted in a programme that overran significantly due to unexpected problems with the vessel’s nuclear reactor.
As part of the general modernisation of HMS Victorious’s systems, it is understood that crew facilities including the galley, gym and entertainment system are being improved as well.
The work will involve stripping out, then replacing, inspecting or refurbishing 90pc of the sub’s current equipment and systems.
Harry Holt, head of Babcock’s nuclear business, last month told investors this would involve giving HMS Victorious “the right capability upgrades, so she can perform her mission against not only the current threat but the future anticipated threat that she will face”.
The programme is expected to sustain about 1,000 jobs at Devonport, where Babcock is also in the process of constructing new state-of-the-art facilities for nuclear submarine maintenance and repairs.
David Lockwood, the defence giant’s chief executive, said: “Delivering the programme for this vital and complex defence asset is our top priority.
“We are proud to have been awarded this complex defence programme which will use our deep engineering expertise to help keep the UK safe.”
Shares in Babcock rose by 2.5pc following the deal’s announcement.