Babcock joint venture lands £115 million Australian Navy contract
Naval Ship Management will maintain eight ANZAC-class frigates as part of a five-year contract.
Babcock International’s joint venture firm has landed a £115 million contract to provide services to the Australian Navy.
Naval Ship Management – Babcock’s joint venture with UGL – will maintain eight ANZAC-class frigates as part of a five-year contract linked to the Australian Warship Asset Management Agreement (WAMA).
Archie Bethel, chief executive of Babcock, said: “I am delighted that we have successfully achieved the next stage of the contract to look after Australia’s ANZAC fleet.
“Babcock has a long and successful history of working with the Australian Navy and we look forward to continuing that relationship over the next 14 years.”
The move follows a bumper win in mid-December when the outsourcer secured a 10-year contract to supply the Sellafield nuclear site with specialist handling and containment systems.
The FTSE 250 group will design, manufacture and supply “complex bespoke equipment” for the treatment and management of nuclear materials through its subsidiary Cavendish Nuclear.
The contract is worth up to £95 million over the first three years, with virtual reality simulation playing a key part in delivering the project.
Shares were down more than 1% in early afternoon trading on the London Stock Exchange.