A new £4bn contract to build five new warships on the Clyde has been hailed as a huge "vote of confidence" in shipbuilding in Glasgow.

The UK Government announced the deal with BAE that the next five Type 26 frigates will be built at the Govan and Scotstoun shipyards.

The five Type 26 frigates - designed for anti-submarine warfare - are in addition to the three currently under construction at the Govan shipyard.

READ MORE: Glasgow shipyards win £4bn frigates contract

The £4.2bn contract secures the yard for the next decade at least, with thousands of jobs to build the ships and supply the yards.

The UK Government said the contract will support 1700 jobs over the next decade at the two BAE Systems sites and 4000 in the wider industry.

HMS Glasgow is nearing build completion and is due to leave the yard by the end of the year to be fitted out at Scotstoun.

HMS Cardiff is currently being built in sections in the ship hall at Govan and HMS Belfast will be the third, completing the first contract.

READ MORE: BAE reveal £100m plan to secure Glasgow shipyard on the River Clyde for decades

The five ships in the new contract will be HMS Birmingham, HMS Sheffield, HMS Newcastle, HMS Edinburgh and HMS London.

Glasgow Times:

A new £100m ship hall is being built on the wet dock in the Govan yard, which is currently being filled in, which will enable the contract to be fulfilled.

Simon Lister, managing director of BAE Systems' naval ships business, told the Glasgow Times the company is “delighted” at what he termed the most significant announcement this century for the industry.

He said: “It is the most important day in the last two decades. It underpins the future of the yards, of careers and gives us the chance to invest in people and in skilling.

“The investment in the new ship hall is well under way as we await planning permission from the authorities.

“That is needed for this contract. We are relying on the new ship hall to increase productivity and provide better conditions for the workforce.”

On the deal for five more frigates, he said the impact will be felt well beyond the shipyard gates.

READ MORE: Inside the Royal Navy ship being built on Glasgow's River Clyde

Mr Lister added: “It means 1700 jobs will continue into the middle of the next decade and we are recruiting to replace people who are leaving the business.

“I can see outside a slew of contractors, scaffolders, painters, and the barge to carry HMS Glasgow is supplied by Mallon, a local firm.

“The industrial community will benefit. It is not limited to BAE, it will very quickly trickle down.”

With the planned investment, the biggest in decades, production at the yard will ramp up considerably.

Mr Lister said: “We plan to cut steel on ship five in two to three months. We have already bought many long lead items for building.

“Momentum”, he added, “is gathering”. 

He said: “The maximum number of ships in production at any one time is five.”

The nature of shipbuilding contracts has often left the Glasgow yards with quiet periods as the owners chase the elusive steady drumbeat of production to ensure jobs and skills stay in the city.

This deal is expected to give a guarantee of work for at least the next 10 to 15 years.

Mr Lister said: “We expect to deliver ship eight by the mid-2030s.

“This contract does sustain Govan and Scotstoun. Our first job is to execute this really well. 

“We are always on the quiet lookout for other opportunities.

“We mustn't prejudice the delivery of the Type 26s but there is the capacity for more.”

The announcement by the UK Government is the culmination of years of work going into ensuring it came to the Clyde.

Mr Lister said: “It has been a challenging two years of work, agreeing on what the estimate is going to be with the MoD.

“We have challenged ourselves to improve productivity. The last ship will be produced 25% more efficiently than the first.

“The MoD, rightly, on behalf of the taxpayer, seeks a good value deal. We offer the best value while maintaining a profitable company.

“We are confident we can deliver for the budget. We've got an advanced level of construction with HMS Glasgow and our background in shipbuilding here.

“We have produced a robust, reliable estimate that meets the MoD requirements.”

He said naval shipbuilding is a modern industry using the latest cutting-edge technology.

Mr Lister said: “People tend to think of shipbuilding as steelwork, and that is there, but this is a sophisticated warship, digitally designed.

“This order is a vote of confidence for Govan and Scotstoun and also in Scottish industry and the ability to achieve levels of productivity using modern technologies it is known for.”

Ben Wallace, UK defence secretary, said: “We are investing in our fleet to ensure our Royal Navy maintains its world-leading capability to protect and defend our nation at sea.

"This design has already been successfully exported to Australia and Canada. It's already proved itself as a world-class maritime capability, securing thousands of UK jobs and strengthening alliances with our allies.

“Supporting thousands of high-skilled jobs in Scotland, and more across the wider UK supply chain, this contract will continue to boost our British shipbuilding industry, galvanising the very best of British engineering, manufacturing and design.”