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BAE considers shipyard closure, putting 1,000 jobs at risk

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Defence company says there's not enough work to keep all of its sites profitable

Defence giant BAE Systems has confirmed that it is considering closing one of its major shipyards, in a move that could threaten more than 1,000 jobs.

The future of the company's bases at Portsmouth and Glasgow has been under threat since the company launched a review of its maritime operations at the start of the year.

Nigel Whitehead, BAE's UK chief executive, said that plans for a “reduction in footprint” could see “the cessation of manufacturing at one of the sites”.

He said a firm decision is expected by the end of the year.

Government spending cuts have been putting the company under pressure, and BAE fears there will not be enough work to keep all of its sites profitable – a gap is expected between the completion of work on the Queen Elizabeth class aircraft carriers and the start of the Type 26 Global Combat Ship programme for the Royal Navy.

Jim Murphy, shadow defence secretary, commented: “This is worrying for everyone involved.

“There must be clarity from the government over the future of these yards and workforces.

“Scotland has such a proud shipbuilding history and it should be a part of our future as well.”

A Scottish government spokesman said: “BAE Systems is an important employer in Scotland.

“We will monitor this situation closely and work with BAE with the aim of ensuring any future plans protect the interests of employees and shipbuilding in Scotland.”

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

The company employs 3,500 staff across its Glasgow shipyards and nearly 5,000 at Portsmouth, although less than half are directly involved in shipbuilding.

BAE's announcement comes after the recent collapse of the planned merger between BAE and EADS. Had the deal gone ahead, the two groups would have formed the world's biggest defence and aerospace group with 220,000 staff and combined sales of £60 billion.

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