BAE Systems, BMT and DSME Form Bid for MARS Fleet Tankers

Released on Friday, February 15, 2008

London, United Kingdom - A consortium led by BAE Systems has today submitted its response to the Ministry of Defence's Pre-Qualifying Questionnaire (PQQ) to design and build up to six fleet tankers for the UK Royal Fleet Auxiliary. The company will partner with BMT Defence Services Ltd and Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) to bid for the contract for the ships, the first part of the Military Afloat Reach and Sustainability (MARS) programme.

BAE Systems through its Surface Fleet Solutions business will act as lead contractor and programme manager, BMT will be the design partner and the ships are planned to be built by DSME in Korea. This approach combines the best global experience in both commercial and military shipbuilding.

Vic Emery, managing director of BAE Systems Surface Fleet Solutions, said "By bringing together this unique mix of UK and Korean commercial and naval design, ship-build and project management capability, the consortium will offer the Ministry of Defence an unparalleled degree of flexibility and experience in delivering the MARS fleet tankers.

"While it is intended that all vessels will be constructed in Korea, a unique feature the consortium offers, in terms of flexibility, is the ability to provide UK build options, should such an approach become necessary".

David Rainford, commercial director of BMT Defence Services, said "As a relatively small, innovative organisation, we are pleased with the smooth and positive fashion in which BAE Systems has welcomed us as their design partner. Through a commercial approach we will be able to provide a simple yet effective MARS fleet tanker".

K W Cheong, director of DSME Special Ship Management said "This is an excellent opportunity for co-operation between our two countries; the UK being the home of naval shipbuilding and Korea as the hub of commercial shipbuilding. I think the combination of BAE Systems' extensive naval domain knowledge with our own skills and resources will produce excellent results."

The MARS programme will become part of the workload of the proposed maritime joint venture between BAE Systems and VT Group, to be called BVT Surface Fleet, upon its completion.