BVT Surface Fleet

Infobox Company
name = BVT Surface Fleet Ltd.

type = Private
foundation = 1 July 2008 [cite news|title = Warship deal takes a step closer |work = BBC News |publisher=BBC|date = 2008-07-01|accessdate =2008-07-01] cite press release| title = BVT Surface Fleet Joint Venture becomes operational| publisher = BAE Systems plc| date = 2008-06-30| url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_108530122154.html| accessdate =2008-07-01]
location_city = Portsmouth
location_country = United Kingdom [ [http://www.bvtsurfacefleet.com/bvt/locations/ BVT Surface Fleet - Locations ] ]
area_served =
key_people = Sir John Parker (Chairman)cite news|last =Jameson|first =Angela|title = VT Group and BAE Systems agree merger to build warships|url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4114698.ece|work = The Times|publisher = Times Newspapers|date = 2008-06-11|accessdate =2008-07-01 ]
Alan Johnston (CEO)
industry = Defence
products = Naval vessels
services = Ship design
Ship support
revenue =
operating_income =
net_income =
assets =
equity =
num_employees = Approximately 7,000
parent = BAE Systems
VT Group
divisions =
subsid =
slogan =
homepage = [http://www.bvtsurfacefleet.com/ www.bvtsurfacefleet.com]
footnotes =
intl = yes

BVT Surface Fleet is a naval shipbuilding and support company owned by BAE Systems and VT Group. BAE and VT own 55% and 45% of the company respectively, however they have equal board representation and voting rights. [cite press release| title = VT Group and BAE Systems to create a world-class provider of naval ships and through life support| publisher = VT Group plc| date = 2007-07-25| url =http://www.vtplc.com/Display.aspx?MasterId=70345562-2677-43d9-adfe-777a6293d9f7&NavigationId=996| accessdate =2008-07-01 ]

The joint venture was formed by the merger of BAE Systems Surface Fleet Solutions and VT Shipbuilding on 1 July 2008. It subsumed another BAE/VT joint venture, Fleet Support Limited, a ship repair, maintenance and engineering company. VT Group is expected to eventually sell its share of the business to BAE. [cite news|last = Griggs|first = Tom|title = VT Group confident of contract wins|work = Financial Times|pages = 23|date = 2007-11-14|accessdate =2008-07-01] [cite news|last =O'Connell|first =Dominic|title = Ceasefire in battle of the naval dockyards|work = Sunday Times|pages = 13|publisher = Times Newspapers|date = 2007-12-16|accessdate =2008-07-01 ] BAE Systems Surface Fleet Solutions owned two shipyards on the River Clyde, Glasgow (Scotstoun and Govan) and VT Shipbuilding owned two shipyards in Portsmouth (VT Shipbuilding and VT Halmatic). These facilities were transferred to BVT Surface Fleet. BAE Systems Submarine Solutions was not included in the joint venture. In return, VT Group acquired BAE System's 50% share in their other joint venture company Flagship Training, now know as VT Flagship.

Background

The Ministry of Defence's (MOD) Defence Industrial Strategy encouraged BAE and VT Group to form a naval shipbuilding joint venture with the aim of maintaining the UK's naval shipbuilding capability. In return the MOD signed a Terms of Business Agreement which pledges that the vast majority of its naval vessel orders will be placed with the new company for 15 years. [cite news |last = O'Connell|first = Dominic |title = UK naval yards get 15-year jobs vow|work = Sunday Times|pages = 2|publisher = Times Newspapers
date = 2007-07-29|accessdate =2008-07-01 ] cite news| last = Webb|first = Tim|title = Abandon ships and sail on: As VT Group and BAE Systems merge shipbuilding arms, the US army and the BBC will occupy Paul Lester|work = The Observer|pages = 7|publisher = Guardian Newspapers| date = 2007-12-16| url = http://www.guardian.co.uk/business/2007/dec/16/vtgroup.armstrade| accessdate =2008-07-01 ] Explaining the rationale for the joint venture from VT Group's perspective, its CEO Paul Lester described shipbuilding as a "lumpy" business, dependent on large contracts placed at irregular intervals. Another issue was the competition between VT and BAE: "We don't want to get into a dogfight with BAE over who would be the survivor... That's what you'd be talking about at some stage."

BAE and VT concluded the merger discussions in early 2008, however creation of BVT Surface Fleet was conditional on the signing of contracts for the "Queen Elizabeth" class aircraft carriers. [cite news| last = Barker| first = Alex| coauthors = Pfeifer, Sylvia| title = Navy's aircraft carriers face delay| work = Financial Times| pages = 2| date = 2008-02-21| accessdate =2008-07-01 ] Following the Ministry of Defence's announcement on 20 May 2008 that it intended to proceed with the manufacturing stage of the project, BAE announced its intention to finalise the joint venture arrangements with VT Group. [cite press release
title = BAE Systems welcomes the MOD carrier announcement |publisher = BAE Systems plc|date = 2008-05-20|url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_10842010345.html|accessdate = 2008-07-01] This was completed on 11 June 2008 and, following VT Group shareholder approval on 30 June, the joint venture became operational on 1 July.

Products

Aircraft carriers

BVT is expected to undertake 40% of the workload of the "Queen Elizabeth" class aicraft carriers. Thales and Babcock will get a 16% share and the remaining 44% will be carried out by BAE Systems Submarine Solutions and BAE Systems Insyte. [cite web
title = CVF - Royal Navy Future Aircraft Carrier, United Kingdom|work = www.naval-technology.com|publisher = SPG Media Limited|date = 2008|url = http://www.naval-technology.com/projects/cvf/|accessdate =2008-07-01 ]

Auxiliaries

BVT has bid for the Military Afloat Reach and Sustainability programme, which will see up to 6 tankers built for the Royal Fleet Auxiliary. BVT is partnered with BMT Defence Services and Daewoo Shipbuilding & Marine Engineering. [cite press release |title = BAE Systems to partner with BMT and DSME for MARS fleet tankers|publisher = BAE Systems plc|date = 2008-02-15|url = http://www.baesystems.com/Newsroom/NewsReleases/autoGen_108115104252.html|accessdate =2008-07-01 ]

Destroyers

BVT's three shipyards all build sections of the Type 45 destroyer, which was previously built as a collaboration between BVT's parent companies. As of July 2008 "Daring", "Dauntless" and "Diamond" have been launched and three others are under construction. The first of class is expected to enter service in 2009.

BVT is studying the UXV Combatant concept based on a destroyer hull for the operation of unmanned land, air and sea systems. [ [http://www.bvtsurfacefleet.com/bvt/products/destroyers/ BVT Surface Fleet - Destroyers ] ]

Frigates

BVT inherited the £400 million Khareef Ocean Patrol Vessel project from VT Group which will see three ships delivered starting in 2010. [cite news |first=Richard |last=Scott|title= VT clinches Khareef OPV deal with Oman |work=Janes Defence Weekly |publisher=The New York Times Company |date=2007-01-24 |accessdate=2008-07-05 ]

Other

BVT's capabilities also extend to patrol vessels, Fast Attack Craft and small patrol craft. [cite web |url=http://www.bvtsurfacefleet.com/bvt/products/ |title=BVT Surface Fleet - Products |accessdate=2008-07-01 |work=www.bvtsurfacefleet.com |publisher=BVT Surface Fleet]

References

External links

* [http://www.bvtsurfacefleet.com BVT Surface Fleet website]