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The Strategic Defence and Security Review (SDSR) announced on the 23rd of November by the UK Government includes a number of important commitments for BAE Systems:
Continued investment in expanding Typhoon capabilities and an extension of the aircraft’s expected service life.
A commitment to work with France to develop an unmanned combat air systems programme.
Accelerated procurement of F-35 Lightning II aircraft for the UK. BAE Systems is a major partner on the international F-35 programme, supplying airframe assemblies and electronic equipment.
Continued commitment to seven Astute class submarines and the replacement of the Vanguard class of submarines.
The Government’s reaffirmed commitment to shipbuilding continuity provides clarity and future opportunities for the Group’s shipbuilding facilities and workforce in Scotland. This includes maintaining a fleet of 19 frigates and destroyers, including eight Type 26 frigates and a planned concept study followed by the design and build of a new class of lighter, flexible, general purpose frigates. There is also a commitment to build a further two offshore patrol vessels.
Continued support for defence exports.
Ian King, Chief Executive, BAE Systems plc commented:
"Today’s announcement provides clarity on the UK Government’s strategic priorities and provides continuity and stability for our business. An increased budget for defence equipment overall includes significant investments in military aerospace, maritime, cyber and intelligence, surveillance and reconnaissance capabilities and ongoing support for defence exports. Our focus will continue to be on working with our customers, industry partners and the thousands of companies in our UK supply chain to deliver leading capabilities and value for money for the UK MOD."
