A £10 billion deal will see warships for the Norwegian navy built in Glasgow, a move hailed as a significant boost for the Scottish economy.

The Ministry of Defence announced that the contract to construct Type 26 frigates at the BAE Systems yard in Govan will support 2,000 jobs until the late 2030s, with another 2,000 roles sustained across the wider UK supply chain. The agreement is also expected to benefit 103 Scottish businesses.

The deal will create a joint fleet of at least 13 anti-submarine frigates for the UK and Norway, with at least five vessels destined for the Norwegian navy. This collaboration aims to enhance NATO’s capabilities in northern Europe, specifically to counter increased Russian submarine activity and protect critical infrastructure in the North Atlantic.

Prime Minister Sir Keir Starmer framed the agreement as a key part of his government’s plan to create jobs, drive growth, and protect national security. Defence Secretary John Healey added that the deal “deepens our strategic partnership” with Norway, ensuring the two navies can train and operate together seamlessly.

Scottish politicians have welcomed the news as a major “defence dividend” for the country. Scottish Secretary Ian Murray stated that Norway’s decision “demonstrates the tremendous success of our shipbuilding industry and showcases the world-class skills and expertise of our workforce on the Clyde”. The contract secures thousands of well-paid jobs, from apprentices to engineers, providing a substantial economic uplift for the region.