Norway has agreed a £10bn deal that will see anti-submarine warships built in the UK, as the two countries plan joint operations in northern Europe to deal with increased Russian activity.
The Ministry of Defence (MoD) said the agreement to build Type 26 frigates is the UK’s biggest ever warship export deal by value, and Norway’s biggest defence procurement deal.
It said that overall it would provide a £10bn boost to the UK economy and support 4,000 jobs across the UK “well into the 2030s”.
The Type 26 frigates will be built at the BAE Systems shipyards in the Govan area of Glasgow, which employs 2,000 staff and is already constructing eight of the warships for the Royal Navy.
“This £10bn deal is what our plan for change is about,” said the UK prime minister, Keir Starmer. “Creating jobs, driving growth and protecting national security for working people. The export of our world leading Type 26 frigates will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.”
It is estimated that the shipbuilding programme will support 432 businesses, including 103 in Scotland, 47 in the north-west of England and 35 in the West Midlands.
The deal also signals a strengthening of a long term strategic relationship with Norway that will see a combined fleet of 13 frigates operate jointly in northern Europe.
Eight of the frigates will be British and “at least” five will be Norwegian with the joint operation designed to “significantly strengthen Nato’s northern flank”.
“This historic defence deal deepens our strategic partnership,” said John Healey, the defence secretary. “With Norway, we will train, operate, deter and – if necessary – fight together. Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure and keep both our nations secure.”
Concerns over critical infrastructure around Europe have been raised on multiple occasions in the last year, after the alleged sabotage of the Baltic gas pipeline and undersea internet cables between Finland and Estonia.
Norway was the only country to participate in the UK carrier strike group’s full deployment this year, and the nation also collaborates with the UK and Nato partners to safeguard critical undersea infrastructure in northern Europe.
“Norway and the United Kingdom are close allies with common interests and strong bilateral ties,” said Jonas Gahr Støre, Norway’s prime minister. “I am confident that the strategic partnership with the UK for purchasing, developing and operating frigates is the right decision.”
The Scottish secretary, Ian Murray, said the decision shows the “tremendous success” of Scotland’s shipbuilding industry and is an example of another “defence dividend” for the country.
The Type 26 frigate features sophisticated weapons, advanced sensors and communications. Its design enables the warship to be upgraded to “counter emerging threats”, according to the MoD’s statement announcing the deal.
“The Norwegian government’s decision reflects its confidence in British industry’s ability to deliver a superior anti-submarine warfare platform, together with systems and equipment,” said Charles Woodburn, the chief executive of BAE Systems. “That will support its future maritime security and reinforce its position within Nato.”
https://www.theguardian.com/business/2025/aug/31/norway-signs-10bn-deal-for-anti-submarine-warships-built-in-uk