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Military

BAE Systems to lead 134m contract for Chile ships

08 Sep 2005

Following the signing of a UK/Chile government-to-government agreement. BAE Systems has been awarded a 134m contract by the UK Ministry of Defence to lead the preparation and transfer of three former Royal Navy Type 23 frigates to the Chilean Navy.

The contract, signed in London Wednesday 7 September 2005 under a UK/Chile government-to-government arrangement, represents an important milestone in BAE Systems long-standing relationship with the Chilean Navy. Leander class ships, which currently form an important part of the current Chilean fleet, were built by Yarrow and Co. now BAE Systems. These ships will be replaced by the Type 23 frigates, the first of which will be delivered next year.

BAE Systems Customer Solutions and Support (CS&S) will work in partnership with the UK Defence Logistics Organisation and UK industry to prepare for transfer HMS Norfolk, HMS Marlborough and HMS Grafton. Preparation of each vessel and crew training is expected to take around eight months. The last ship will be delivered in 2008.

This latest contract is excellent news for BAE Systems and excellent news for UK industry, providing work and sustaining important capabilities in the countrys defence industrial base, comments Ian King, group managing director Customer Solutions and Support. It follows our successful modernisation and delivery of two former Royal Navy Type 22 frigates for Romania, completed on time and to budget, earlier this year.

BAE Systems business units, including Integrated System Technologies and Flagship, a company jointly owned by BAE Systems and the VT Group which manages UK Royal Navy training establishments, will be involved in the programme.

BAE Systems and its industrial partners will seek to identify future opportunities for technological co-operation to support Chiles existing capabilities. We look forward to further developing the already strong relationship between BAE Systems and Chile, states Mike Mendoza, managing director, Partnerships.

About BAE SYSTEMS

BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs more than 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.

For further information, please contact:

Mike Sweeney, BAE SYSTEMS
Tel: + 44 (0) 1772 856 034 Mobile: + 44 (0) 780 171 6452
mike.sweeney2@baesystems.com

John Neilson, BAE Systems
Tel: + 44 (0) 1252 384795 Mobile: + 44 (0) 7802 337704
john.neilson@baesystems.com



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