The Prime Minister, David Cameron, has announced a major boost to the UK’s shipbuilding industry as the Ministry of Defence signs a contract with BAE Systems worth £859 million.

Around 1700 jobs will be sustained as a result of the investment in the future Type 26 complex warship – the next-generation Royal Navy frigates – with 600 of the jobs safeguarded in Scotland, where the Type 26 will be built.

Various other sites across the country will also benefit from the announcement including in Derbyshire, West Yorkshire, Manchester, Cheshire, Warwickshire, Leicestershire and Hampshire.

The T26 Global Combat Ship (GCS) will be a multi-mission warship capable of joint and multinational operations across the full spectrum of warfare, including complex combat operations, counter-piracy, humanitarian and disaster relief work.

The new contract will include investment in essential long-lead items for the ships and shore testing facilities. There will also be investment in key equipment for the first three ships – such as gas turbines, diesel generators and steering gear – allowing suppliers to plan, invest and secure their workforce on the project.

Welcoming the announcement, Mr Cameron said: “This is a substantial investment in our shipbuilding industry, safeguarding the jobs of 600 workers in Scotland and many more across the UK. Investing in these warships will ensure we continue to keep our country safe, at home and abroad. As part of our long-term economic plan, we’re not just building the most advanced modern warships in the world – we are building the careers of many young people with apprenticeships that will set them up for life.”