10 Mar 03. BAE SYSTEMS announced the next steps in the ongoing re-structuring of its naval businesses. Continuing in line with the build strategies announced in January 2003, Sea Systems Group will realign around three businesses reporting directly to the Chief Operating Officer – Programmes. It is intended that this realignment be completed by mid-2003.
Sea Systems Group, formed in January 2002, was established to integrate the management of BAE SYSTEMS’ major naval programmes with the shipbuilding activities of BAE SYSTEMS Marine. This move addressed the challenge of managing a number of complex programmes across multiple sites, and established a matrix organisation headquartered at Farnborough.
The difficulties exposed in late 2002 on the ASTUTE submarine programme resulted in a re-appraisal of the workload at each of the company’s facilities. In January 2003, BAE SYSTEMS stated its intention, subject to necessary Government approvals, to build all Type 45 Destroyers at its Clyde facilities and all ASTUTE submarines at its Barrow facilities. This remains the Company’s plan, and provides the opportunity to simplify the management framework around naval programmes.
Following completion of the Landing Platform Dock project, Barrow production facilities will be focussed on submarine activity. Clyde facilities will address surface ship business including Type 45 Destroyers, LSD (A)s, export ship projects and shipbuilding activity associated with the new Carrier programme.
BAE SYSTEMS will progressively transition from the current Sea Systems Group organisation to three separate business units over the next three months, completing by mid-year, as follows:
This business unit will comprise Barrow facilities and staff, the ASTUTE/Swiftsure & Trafalgar Class submarines Update teams at Farnborough and Weymouth, and the ASTUTE/Swiftsure & Trafalgar Class submarines integration facilities at Ash Vale. Murray Easton is to become Managing Director – Submarines, based at Barrow.
Detailed negotiations are ongoing between the Company and the MoD to re-structure the ASTUTE contract with the aim of concluding these discussions by mid-year.
This business will comprise Clyde-based facilities and staff, including the Surface Ships and Type 45 Destroyer teams, as well as the Type 45 Destroyer team at Filton, including the Type 45 Destroyer shore-based integration team. Robin Imms will act in the capacity of Managing Director – Naval Ships, pending the announcement of a permanent appointment to that post.
Andy Williams will continue as Managing Director-Underwater Systems, responsible for that business at Waterlooville.
Steve Mogford, Chief Operating Officer, BAE SYSTEMS said, “BAE SYSTEMS is profoundly grateful to the Sea Systems Group management team for the efforts over the last 14 months in bringing us to this point. It has been an extremely difficult period and whilst there remain many challenges ahead, we can now see a clear way forward. This simplification of our naval business management structure is the result of the excellent work by Sea Systems.”