BAE Systems has agreed an £859m contract with the Government that pushes forward the development of a new class of warship for the Royal Navy.
The company has signed a demonstration contract that will provide funding to begin ordering major parts for the new Type 26 Global Combat ships.
Under the deal, which moves the programme from development towards the early stages of manufacturing, BAE will begin investing in systems for the first three vessels in the class, which require long lead times to build, such as gas turbines engines, diesel generators and steering gear. It will also begin work on on shore testing facilities for the ships.
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