BAE sees supply contract extended for Falklands ship

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GLOBAL defence company BAE Systems has won a contract extension to deliver support services to HMS Clyde, which will now remain in the South Atlantic to protect the Falkland Islands until 2018.

It is estimated the deal is worth around £60m for BAE Systems’ Surface Ships division, based in Portsmouth.

HMS Clyde is part of the Royal Navy’s Fishery Protection Squadron.

Mick Ord, managing director of BAE Systems’ Surface Ships division, said: ‘We have an engineer permanently based in the Falklands to deliver all repairs and maintenance to the vessel stationed 8,000 miles from the UK.

‘This radical approach helps us to achieve great results and is helping to shape the way we deliver support services to our customer.

‘Our ability to deliver repair and maintenance services to warships wherever they are around the world provides real value to the Ministry of Defence.

‘Minimising return trips to the UK and ensuring rapid defect rectification helps to reduce costs and deliver maximum availability of warships to meet operational commitments.’

Meanwhile, BAE Systems pulled out of the tender to supply the Indian Defence Ministry with 400 towed artillery guns for the Indian Army.

BAE spokesman Guy Douglas said in a statement that the decision was taken after it emerged the new tender includes technical and performance relaxations that allow less capable weapon systems to enter the competition.

He said: ‘BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal.’