The owner of Balaena Birkenhead, formerly known as Cammell Laird, has responded to the government's £15bn investment in defence and confirmed it 'stands ready to help deliver what Britain needs'. The Ministry of Defence (MoD) has told the Liverpool ECHO that the Defence Investment Plan (DIP) does not affect the existing MoD contracts and sub-contracts currently held by the Merseyside shipyard.
Background on the Shipyard's Transition
The Liverpool ECHO reported on a series of changes to the Cammell Laird shipyard last month, including a £150m takeover and the subsequent name change to Balaena Birkenhead. When we met with Balaena Group CEO Simon Gillett on June 15, he spoke about the purchase of Cammell Laird, what workers can expect from the new company, and the recent tumult about the defence spending review.
Balaena's Stance on the Defence Investment Plan
Ahead of the government's statement on its Defence Investment Plan, Mr Gillett told us: 'We've got a number of senior former Royal Navy personnel on our board to ensure that we keep that relationship going, and we see it as absolutely core, but not to the detriment of the commercial world. We need to get a good balance between those two, but grey ships and the Royal Navy and the RFAs (Royal Fleet Auxiliary) that we see behind us, are absolutely key to success.'
The Defence Investment Plan was announced on Tuesday, June 30, with many observers noting the government's shift in military priorities, including more investment in drone technology and less on shipbuilding. One example is the shelving of plans to replace the Royal Navy's ageing Type 45s with the Type 83 destroyer.
Impact on Merseyside Shipyard
The ECHO understands Balaena has welcomed the DIP, saying it marks an important step towards rebuilding Britain’s maritime industrial capability while supporting highly skilled employment across Merseyside. Balaena's Chief Executive Simon Gillett said: 'Birkenhead has one of the richest shipbuilding and marine engineering traditions anywhere in the world. Today’s announcement recognises that Britain needs strong industrial capability if it is to strengthen national security. The Government is signalling a significant change in how Britain’s defence and security will be secured. Balaena fully supports that ambition.'
'Our Merseyside workforce combines generations of experience with modern engineering expertise. We are an agile organisation capable of responding quickly to the needs of the Royal Navy and delivering complex programmes efficiently. Defence investment is also investment in communities. It supports apprenticeships, local businesses, high-quality manufacturing jobs and long-term economic growth. We stand ready to work with Government and our partners to deliver the capabilities Britain needs, on time, on budget and to the highest standards.'
Future Opportunities and Existing Contracts
Balaena said the government's announcement demonstrates 'renewed confidence in British shipbuilding' and provides long-term opportunities for Merseyside’s skilled workforce and supply chain. The ECHO can also confirm that DIP does not affect the existing MoD contracts and sub-contracts held by Balaena Group, including its site in Birkenhead. Furthermore, Balaena Group will be entitled to bid for any future contracts arising from the Hybrid Navy vision outlined by the Defence Investment Plan.
A Ministry of Defence spokesperson told the ECHO: 'The UK is committed to sustaining its shipbuilding industry and is actively working to ensure that this remains a growth industry for the UK.'
