VT Chairman Outlines Venture with BAE Systems
In a statement provided with the company's Preliminary Results , VT Group's chairman Michael Jeffries gave an indication of how the new shipbuilding venture between his company and BAE Systems would be structured. He said "We announced in December 2006 that we had entered into discussions with BAE Systems to combine our respective surface shipbuilding and naval support businesses, including Fleet Support Limited (FSL). The proposed consolidation is in line with the Defence Industrial Strategy and would create a world-class provider and strategic partner for the UK Government. "It is envisaged that the JV would be owned 45% by VT and 55% by BAE Systems, with equal board representation and voting rights."He also confirmed VT Group's withdrawal from small commercial boatbuilding activities. Earlier the group announced that VT Halmatic would be restructured and would concentrate on the build of small military vessels. VT Shipbuilding saw profits higher than last year with a turnover of £164.0m making £13.2 million in profits. However this figure excluded costs for the restructuring of Halmatic. Source: Shipping Times