Rosyth shipyard set to win more than £1bn Danish frigate deal, boosting Scottish shipbuilding exports

The Rosyth shipyard in Fife is expected to win a contract to build four Type 31 frigates for the Danish navy worth more than £1 billion, industry and government sources said, marking a significant boost to Scottish shipbuilding exports.

The yard, operated by British defence group Babcock, is also one of two final bidders for a Swedish navy contract for up to seven of the same Type 31 design. The Swedish competition pits Babcock against a French shipbuilder that has received vigorous backing from the French government. Procurement decisions on the two foreign contracts are expected within the next six months after more than a year of discussions.

Babcock’s Rosyth yard is already building five Type 31 frigates for the Royal Navy, with HMS Venturer the first of that class under construction. The potential Danish order would prolong work at the yard and broaden its export remit, following a recent run of international naval awards that industry observers say have helped reverse a long decline in large-scale military shipbuilding in Scotland.

Last week BAE Systems secured a contract to build Type 26 frigates for the Royal Norwegian Navy at its shipyards on the Clyde in Scotstoun and Govan, and Prime Minister Sir Keir Starmer visited Glasgow to mark that success. Taken together with the Rosyth pipeline, the awards underline a concentrated period of naval export wins for UK yards.

Officials involved in the procurement processes have declined to disclose final decisions while discussions continue, but the contracts have been under negotiation for more than a year. The Danish deal, if confirmed at the reported value, would be one of the largest recent export orders for a Scottish shipyard and would follow the domestic Type 31 programme that revived activity at Rosyth after long periods of limited naval construction.

Babcock has said previously that its UK shipbuilding operations form a core part of its portfolio, while highlighting the Type 31 as a design intended for international export. The Type 31 is pitched by its proponents as a flexible, cost-effective frigate for mid-sized navies, and has been central to recent UK naval export campaigns.

The Swedish competition involves up to seven ships and has attracted political attention because of the French government’s overt support for its domestic shipbuilder. The outcome of that contest will be watched by other European navies and defence suppliers as a barometer of Britain’s competitiveness in naval exports post-Brexit.

Analysts say confirmed export orders would sustain supply chains and employment at yards involved in production and outfitting, though specific job impacts depend on contract finalisation and delivery schedules. The Type 31 programme’s domestic element provided work at multiple UK facilities and suppliers, and further export deals are expected to follow similar industrial arrangements.

Procurement officials in Denmark and Sweden have not published formal award notices at this stage. The decisions, anticipated within six months, will determine whether Rosyth secures the Danish order and whether it can add the Swedish ships to its workload.

If the Danish award is confirmed, it would consolidate a string of recent naval contracts for UK shipbuilders and reinforce Scotland’s role in supplying frigates to international navies, continuing a marked shift in the sector after several years of limited large-scale naval export activity.