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Birmingham Post
Birmingham Post
Business
Tom Keighley

Fears North East shipyard will miss out on £1.6bn MoD order thought to be headed to Spain

A union has raised fears that a £1.6bn order for three supply ships could be awarded to a Spanish company, meaning a North East shipyard would miss out.

The GMB union says sources close to the tendering process have suggested the work to build several 400,000 tonne Fleet Solid Support (FSS) vessels for the UK’s aircraft carriers could go to Spanish Government-owned company Navantia. A competitive tender was first launched in May last year, and has seen several overseas firms enter the bidding.

The move has previously provoked criticism and now GMB estimates that at least £285m would also be returned to the taxpayer through income tax, national insurance contributions and lower welfare payments, if the ships were built in the UK.

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