Updated 9:41am 4 December 2012

BAE yard faces closure threat as cuts are felt

BAE is feared to be facing a shortage of government-funded work after HMS Queen Elizabeth is completed at Govan
BAE is feared to be facing a shortage of government-funded work after HMS Queen Elizabeth is completed at Govan

DEFENCE giant BAE is considering closing one of its major shipyards in a move that could threaten more than 1,000 jobs.

BAE’s UK chief executive Nigel Whitehead has confirmed a decision is expected by the end of the year.

The future of the company’s three major bases – one at Portsmouth and two in Glasgow, at Govan and Scotstoun – has been under threat after BAE launched a review of its maritime operations at the start of the year.

It is believed Portsmouth is most at risk and a closure could reportedly put about 1,500 jobs at risk.

Mr Whitehead told a London newspaper that plans for a “reduction in footprint” could see “the cessation of manufacturing at one of the sites”.

“We will be making decisions this year,” he added.

The blow comes after last month’s collapse of the planned mega-merger between BAE and Airbus parent EADS.

The two groups called time on the tie-up, which would have created the world’s biggest defence and aerospace group with 220,000 staff worldwide and combined sales of £60bn, after political hurdles proved insurmountable.

BAE said it was in contact with the Ministry of Defence as it reviews its shipbuilding future.

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