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Babcock awarded Canadian submarine contract extension
Engineering services firm Babcock has secured a three-year, £225m extension to its existing support contract with Canada's fleet of four Victoria Class submarines.
Babcock's contract, which has been extended to 2021, is the largest naval in-service support contract in Canada and will see more than 400 of the FTSE 250-listed firm's "highly experienced" engineers, project managers and specialist support staff continue to work on all four submarines in refit and in service, including deep maintenance periods as required.
Babcock's chief executive Archie Bethel, said, "Babcock is a trusted industrial partner to the Royal Canadian Navy and the extension of this strategic submarine support contract underlines the belief in our expert delivery and the world-class technical support our team provides."
"We continue to invest in Canada's strategic submarine capability through our skilled people, involvement in the Canadian supply chain and our processes. We are delighted to be continuing this relationship with a much-valued customer," he added.
As of 1430 BST, Babcock shares had picked up 1.77% to 838.60p.