The defence giant BAE Systems has won its first export order for submarines in 30 years. The deal with Spanish shipbuilding company Navantia to supply parts for four diesel-electric hubs is estimated to be worth less than £10m but is seen as strategically important for BAE as it could mark the start of a longer-term relationship between the two companies.
BAE will make eight pressure domes at its base in Barrow-in-Furness, Cumbria for four S80 boats being built for the Spanish navy and will deliver them by the end of this year. It will also provide technical support in aspects of pressure-hull fabrication as the programme develops.
Simon Jones, who led the negotiations for BAE, said the deal represents an important progression in the international submarine sector. "We are developing the basis of a long-term collaborative and co-operative relationship, equal in terms of responsibility and benefit," he said. "We see this as the future basis for business arrangements in our respective markets."
The group fought off competition from Germany, France, Russia and the US to win the order. Navantia is Spain's nationalised shipbuilding industry and has shipyards in Cartagena, El Ferrol and Cadiz. The S80 is the first submarine the Spanish have built on their own.
BAE said its priority is its Astute nuclear submarine building programme, which is under way, but the contract marks a welcome return to the export market. BAE is due to launch its first Astute submarine in June.
However, it is looking increasingly likely that BAE will walk away from the bidding for the Devonport submarine yard, near Plymouth, which refits and refuels Britain's nuclear submarine fleet. The deadline for final offers is today.
BAE is understood to have held talks with rival bidder Babcock International about making a joint offer for the yard but these are believed to have stalled after the two sides failed to reach an agreement.
BAE will make eight pressure domes at its base in Barrow-in-Furness, Cumbria for four S80 boats being built for the Spanish navy and will deliver them by the end of this year. It will also provide technical support in aspects of pressure-hull fabrication as the programme develops.
Simon Jones, who led the negotiations for BAE, said the deal represents an important progression in the international submarine sector. "We are developing the basis of a long-term collaborative and co-operative relationship, equal in terms of responsibility and benefit," he said. "We see this as the future basis for business arrangements in our respective markets."
The group fought off competition from Germany, France, Russia and the US to win the order. Navantia is Spain's nationalised shipbuilding industry and has shipyards in Cartagena, El Ferrol and Cadiz. The S80 is the first submarine the Spanish have built on their own.
BAE said its priority is its Astute nuclear submarine building programme, which is under way, but the contract marks a welcome return to the export market. BAE is due to launch its first Astute submarine in June.
However, it is looking increasingly likely that BAE will walk away from the bidding for the Devonport submarine yard, near Plymouth, which refits and refuels Britain's nuclear submarine fleet. The deadline for final offers is today.
BAE is understood to have held talks with rival bidder Babcock International about making a joint offer for the yard but these are believed to have stalled after the two sides failed to reach an agreement.