Revealed: the £200m plan for a frigate factory on the Clyde

The defence giant has given its clearest signal yet that it aims to build a new generation of Royal Navy warships at a proposed "world-class facility" at its Scotstoun yard in Glasgow.

However, bosses admit their preferred scheme would cast doubts on the long-term future of their second Clyde yard, Fairfields in Govan, which they now describe as "sub-optimal".

BAE Systems and the UK Government will not announce a final decision on the factory or the new Type 26 frigates it will make until shortly after September's independence referendum.

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