Govan Shipyard Warned That Future Depends On New Orders

BAE Systems Plc warned that future employment prospects at its Govan shipyard near Glasgow are wholly dependent on new orders being won. The group was announcing completion of the $3.6 million rescue acquisition of Govan from Norway's Kvaerner agreed in July. BAE has agreed a 20 year lease of the land and buildings in a joint deal with port services group Clydeport Plc, which will own the site. "The Govan yard is helping already with an important order and we know from previous co-operative working arrangements the high quality of output," said BAE Group Managing Director, Operations Rod Leggetter. "However, nobody is under any illusions that a critical factor in the shipyard's future is winning new business, in particular the roll-on-roll-off vessels contract for the U.K. Ministry of Defense." On Tuesday, the MoD extended until January 14 the time allowed for confirmation of bids for six RoRo equipment transport vessels to allow bidders more time. Bids were first submitted in July and a decision had been planned for the autumn. Govan is part of the Sealion consortium, one of four bidders. The MoD said it wanted to ensure maximum value for money and was "keen to ensure that U.K. shipyards are given every chance to prove their competitiveness."