VT calls for UK shipbuilding shake-up

VT Group has added its voice to calls to restructure the UK shipbuilding industry while at the same time ruling out a bid for the Clydeside operations owned by rival BAE Systems.

Chief executive Paul Lester described the current ship-building set-up as “crazy”, complaining that something had to change to help the firm provide its Portsmouth workers with continuous work.

The criticism followed BAE?s revelation that ongoing talks with the Ministry of Defence could lead to a combined firm to run all six UK yards – an idea that could see collaboration on government projects between the four current owners.

Lester conceded that a merger of yards was “clearly an option for the industry at some point”, although he cautioned that formal tie-ups could be scuppered with arguments over valuation.

One VT idea is that UK shipyards could co-operate on the forthcoming £1.5 billion contract to build two aircraft carriers, but still compete on frigate work or offshore patrol craft.