Change on the horizon for British shipyards as exports return

After decades of decline, British naval shipyards are seeing their strongest revival in decades, with Norway ordering new warships from the UK for the first time since 1899. Its GBP 10 billion contract for five Type 26 frigates will be fulfilled at BAE Systems yards in Glasgow, in the biggest single defence order in Norway’s history -- and the most valuable warship export ever won by Britain.

The deal comes as Babcock’s Rosyth yard in Fife pursues contracts to build four frigates for Denmark and up to seven for Sweden. Together, these projects could add thousands of jobs and double Rosyth’s workforce to 4000. The yard is already building five Type 31 ships for the Royal Navy and has exported the same design to Poland and Indonesia.

Industry leaders say the turnaround reflects rising NATO defence spending and urgent demand for new vessels in northern waters. Prime Minister Keir Starmer visited Glasgow to mark the Norwegian success and highlight government support for the sector.

The Norwegian order “... helps underpin the UK as an exporter of warships to allied nations, which we haven't done for a long time,” said David Lockwood, Babcock chief executive. “The UK is in a position it hasn't been in for many decades as a shipbuilder.”