Britain signs CV contract

The British Ministry of Defense signed the contract with the VT Group to build the two new aircraft carriers for the Royal Navy. See an article here. Previous reports had the Scottish government worried that Britain might renege on the deal due to differences with the emerging nationalistic mood in Scotland. See a post here. The total contract value is about $7.5 B with as always with these kind of programs the chance to go higher.

Scotland’s government snipes over CV delays

June 23, 2008 by Dagpotter · 1 Comment
Filed under: Contract Awards, VT Group, production program 

Worried about the effect on their workforce, Scottish MPs criticized the English government for not moving fast enough to award the new CV construction contract. For more see the BBC here. The two carriers will be built primarily in Scottish shipyards and will cost over 4 billion Pounds. Scotland is worried that with a possible change in the future constitutional relationship between the two countries may make the British government turn to English yards for the work. The Scottish defence industry is heavily dependent on English orders, not having had much luck securing foreign work. More to come on this, I am sure.