Norway has agreed a £10bn deal for anti-submarine warships that will be built in the UK, as the two countries plan joint operations in northern Europe to deal with increased Russian activity.
The Ministry of Defence (MoD) said the agreement to build Type 26 frigates was the UK’s biggest ever warship export deal by value, and Norway’s biggest defence procurement deal.
It said that overall it would provide a £10bn boost to the UK economy and support 4,000 jobs across the UK “well into the 2030s”.
The Type 26 frigates will be built at the BAE Systems shipyards in Glasgow, which are already constructing eight of the warships for the Royal Navy.
“This £10bn deal is what our plan for change is about,” said the UK prime minister, Keir Starmer. “Creating jobs, driving growth and protecting national security for working people. The export of our world-leading Type 26 frigates will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.”
It is estimated that the shipbuilding programme will support 432 businesses, including 103 in Scotland, 47 in the north-west of England and 35 in the West Midlands.
The deal also signals a strengthening of a long-term strategic relationship with Norway, as part of which a combined fleet of 13 frigates will operate jointly in northern Europe.
Eight of the frigates will be British and “at least” five will be Norwegian, with the joint operation designed to “significantly strengthen Nato’s northern flank”.
“This historic defence deal deepens our strategic partnership,” said John Healey, the defence secretary. “With Norway, we will train, operate, deter and – if necessary – fight together. Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the north Atlantic to hunt Russian submarines, protect our critical infrastructure and keep both our nations secure.”
Concerns over critical infrastructure around Europe have been raised on multiple occasions in the last year, after the alleged sabotage of the Baltic gas pipeline and undersea internet cables between Finland and Estonia.
Norway was the only other country to participate in the UK carrier strike group’s full deployment this year, and it also collaborates with the UK and Nato partners to safeguard critical undersea infrastructure in northern Europe.
“Norway and the United Kingdom are close allies with common interests and strong bilateral ties,” said Jonas Gahr Støre, Norway’s prime minister. “I am confident that the strategic partnership with the UK for purchasing, developing and operating frigates is the right decision.”
The Scottish secretary, Ian Murray, said the decision showed the “tremendous success” of Scotland’s shipbuilding industry and was an example of another “defence dividend” for the country.
The Type 26 frigate features sophisticated weapons, and advanced sensors and communications. Its design enables the warship to be upgraded to “counter emerging threats”, according to the MoD’s statement announcing the deal.
Charles Woodburn, the chief executive of BAE Systems, said: “The Norwegian government’s decision reflects its confidence in British industry’s ability to deliver a superior anti-submarine warfare platform, together with systems and equipment, that will support its future maritime security and reinforce its position within Nato.”