Further supplementary memorandum submitted
by BAE SYSTEMS (SHP 6B)
As requested at the Scottish Affairs Select
Committee, I write to clarify the position of BAE SYSTEMS regarding
investment in our Clydeside shipyards.
Can I firstly clarify the rational behind the
investment, there has been some confusion that the investment
was a some sort of "deal" made with the task force,
this was not the case, the investment outlined on page 43 and
44 of the Shipbuilding task force report was identified during
2001 and forms part of the BAE SYSTEMS strategic business plan.
It has also been consistently stated that the investment consists
of £75m over a ten year period and is directly linked to
both UK MOD and Export projects also included in our business
plan.
The expenditure is centred around:
— Creating a world class steelwork centre
of excellence in our Govan Yard.
— Creating a Manufacturing/Export/Type
45 centre of excellence in our Scotstoun Yard.
— Creating a Submarine centre of excellence
in our Barrow Yard, including maximising utilisation of the Devonshire
Dock Hall.
— Clydeside Carrier Assembly Strategy for
BAE SYSTEMS Marine.
As identified in the Task Force report we have
committed to spend over £9m this year in our Clyde Yards,
the detail being:
Scotstoun—Current Investment
— IT System Infrastructure
— Completion of Covered Dry Dock Enhancement
— T45 Design Office Refurbishment
— Technical Offices Refurbishment
— Joinery Centre of Excellence
— New Medical/HS&E Centre Phase 2
— New Dry Dock Doors
— Type 45 RoRo facility
Total—£4.8 M
Govan—Current Investment—
— Steelwork Centre of Excellence, inc:
— Plasma Burning Machine
— Transfer Seam Welder
— Panel Line Welder
— New Overhead Cranes
— New Fabrication Shop Doors
— Improved Work Environment
— Transfer Robotic Cutter
— New Programme Office
— New Medical Centre
— CCTV Security Upgrade
— Land Rationalisation/New Car
Park
Total—£4.765 M
The above items detail the capital spend this
year and I enclose photographs[5]
of recent investment in our Clyde Yards showing how we are progressing
against our intent to a successful Clyde Shipbuilding business.
If you or any of the committee wish to visit the yards to view
the improvements being made, this can of course be arranged.
The remaining investment is identified for:
— Further improvements to Scotstoun and
Govan for the Type 45 Programme.
— Further improvements to Scotstoun for
Export opportunities.
— Improvements in Govan for the new Carrier
Programme.
— Improvements to the Inchgreen facility
for the Carrier Programme
The profile of this spend is described in the Task
Force report, however I do need to reiterate the timing is dependant
on the timing of the programmes themselves.
If you require any clarification on the above please
do not hesitate to contact me.
Mr Simon Kirby
Managing Director, Type 45 Destroyer PCO
26 June 2002
5 Not published. Back
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