Babcock International Group PLC (Babcock), the leading submarine support provider
to the Royal Navy, announces that the Canadian Government has awarded Babcock
Marine the In-Service Support contract for its four Victoria class submarines (VISSC).
This contract marks Babcock’s entry into the international submarine support market
utilising the significant technical expertise and depth of knowledge built up over many
years within its UK Marine division.The initial contract is for five years and is expected to be worth around C$250 million
(£125 million) to Babcock. The Canadian Government has options to extend the
contract up to a total of 15 years, with the total contract value to Babcock expected to
be in the order of C$1.5 billion (£750 million). The VISSC contract will be managed by a joint venture company, the Canadian
Submarine Management Group (CSMG), formed by Babcock Marine and Weir
Canada Inc. CSMG will operate from a head office in Ottawa with a number of
seconded staff from Babcock Marine in the UK providing submarine support
expertise. Victoria Shipyards will be sub-contracted to undertake the refits in their
shipyard near Vancouver and BMT Fleet Technology will provide some specialist
technical support. Peter Rogers, Chief Executive of Babcock commented
“We are delighted to have won this contract, which recognises the strength that we
derive from our leading position in the UK submarine support market. This contract
represents our first move into the international submarine support market, where we
hope to build further on our existing expertise. We look forward to working with the
Canadian Government to develop the long-term relationships and deliver the high
standards of customer service for which we are recognised.” |
