£10bn boost for British shipbuilding as Norway selects UK warships

Posted on 1 Sep 2025 by James Devonshire
Company: BAE Systems

The UK has secured its biggest ever warships export deal by value after Norway confirmed it will purchase British-built Type 26 frigates in a £10bn agreement. The deal is expected to pump billions into the UK economy, securing thousands of jobs and strengthening defence ties with one of Britain’s closest NATO allies.

Key takeaways:

  • Record UK warship export deal – Norway has ordered British Type 26 frigates in a £10bn agreement, marking the UK’s largest-ever warship export deal by value.
  • Major economic boost – The programme will support 4,000 UK jobs well into the 2030s, including 2,000 at Glasgow shipyards, and benefit more than 400 businesses nationwide.
  • Strengthened defence partnership – Operating identical fleets will deepen UK-Norway military cooperation, reinforce NATO’s northern flank, and bolster Euro-Atlantic security amid growing Russian threats.

Designed for advanced anti-submarine warfare, the frigates will be built at BAE Systems’ Glasgow shipyards, supporting more than 2,000 jobs directly on the Clyde and a further 2,000 across the wider UK supply chain. In total, the programme will sustain 4,000 roles nationwide well into the 2030s and benefit 432 companies, including 222 small and medium-sized enterprises. Businesses across the UK will share in the work, including 103 in Scotland, 47 in the North West of England, and 35 in the West Midlands.

Norway’s selection of the UK’s Type 26 follows similar decisions by Australia and Canada, underlining the ship’s status as a global benchmark for naval capability. The move reflects decades of close defence cooperation between London and Oslo and comes amid heightened security concerns in northern Europe, where Russian submarine activity is on the rise.

The agreement paves the way for a deeper UK-Norway defence partnership that will see the two nations operate an identical fleet of 13 anti-submarine warfare frigates – eight for the Royal Navy and at least five for Norway. Together, the combined fleet will significantly reinforce NATO’s northern flank, providing a shared capability to detect and counter hostile submarines.

As well as shipbuilding, the partnership will extend to joint maintenance, training, in-service support, and personnel exchanges, cementing a long-term strategic relationship. The deal also precedes a new bilateral defence agreement aimed at strengthening Euro-Atlantic security and boosting jobs, growth, and innovation in both countries’ defence industries.

The announcement comes against the backdrop of this year’s Strategic Defence Review, which reaffirmed Norway’s position as one of Britain’s most valued allies. Norway is the only nation set to take part in the UK Carrier Strike Group’s full deployment in 2025 and continues to work with the UK and NATO partners to safeguard vital undersea infrastructure across northern Europe.

The Type 26 frigates feature sophisticated weapons systems, advanced sensors, and cutting-edge communications, with a flexible design that allows for upgrades to counter emerging threats – ensuring they remain at the forefront of naval warfare for decades to come.

On behalf of Team UK industry partners, Charles Woodburn, Chief Executive of BAE Systems, said: “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, that will support its future maritime security and reinforce its position within NATO.

“We look forward to playing our part in further strengthening the strategic partnership between the UK and Norway, as we work together with Norwegian industry to deliver this important capability to the Royal Norwegian Navy.”

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