Babcock wins naval contract worth around £1bn
FTSE 250 defence firm Babcock has secured a contract to design and build the weapons handling system for Australia's new Attack class submarines.
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The contract with Naval Group, which was announced on Monday by the Australian Ministry of Defence, will support the operation and sustainment of the future submarines, including managing the involvement of the local supply chain in the manufacture, supply and assembly of critical components for the weapons handling system.
The government's AU$50bn programme will see 12 Attack class submarines designed and built for the Navy.
Babcock said its role is expected to be worth around £1bn over the lifetime of the programme and work on the design will begin immediately.
Chief executive officer Archie Bethel said: "I am delighted that Babcock will play a significant role in Australia's future submarine programme. The ability to transfer our unique Babcock IP, know-how and expertise internationally across the group allows us to play an increasing role in ensuring the defence of countries around the world."
At 1420 GMT, the shares were up 0.1% at 587.20p.