The Ministry of Defence has said that new support vessels being procured under the Defence Maritime Services Vessel Replacement Programme will not be built in China, following reporting that raised questions about potential overseas construction under the Serco-led contract.
In an updated statement issued after the publication of earlier reports, an MoD spokesperson said: “Vessels being procured as part of this contract will not be built in China and future maintenance of the vessels will take place in the UK.”
The clarification relates to a fleet of harbour support craft, including tugboats, pilot boats and barges, that are being replaced under the Defence Maritime Services Next Generation programme. The vessels are intended to support operations across major UK naval bases, including HM Naval Base Clyde at Faslane, Devonport and Portsmouth.
The programme sits within a wider In-Port Services Contract awarded to Serco in April 2025 following a competitive tender process. Under the terms of that arrangement, Serco acts as the prime contractor and selected Dutch shipbuilder Damen as its shipbuilding partner to deliver the vessel replacement element of the contract as a subcontractor.
Earlier MoD statements had confirmed that the vessels would be built outside the UK, reflecting the structure of the contract, but did not specify which countries would be involved. That, combined with Damen’s established global production model and previous overseas builds for allied customers, had prompted scrutiny from ourselves and others over whether some vessels could be constructed in China.
In its updated position, the MoD sought to draw a clearer line on that point, stating explicitly that China would not be used as a build location for vessels under the programme. It should be noted that Serco is permitted to select its own supply chain in accordance with the procurement requirements, and that while the vessels will be maintained in the United Kingdom, construction will take place in shipyards outside the UK.
“This Government is stepping up our support for UK shipbuilders,” the MoD spokesperson said. “We are looking closely at the subcontracting supply chain as part of our Shipbuilding and Maritime Technology Action Plan, which will set out our plans to ensure that we are maximising our use of UK industry as an engine for growth.”
Why China?
Trade reporting has previously documented Damen’s use of shipyards in Europe and Asia for different classes of workboats, depending on vessel type and production capacity. In Australia, for example, tugboats ordered for naval support roles were confirmed by the Department of Defence to have been built at a Damen yard in China under a separate civilian support contract, though that programme is distinct from the UK arrangement.
Union representatives and some politicians have argued that the UK programme represents a missed opportunity to support domestic shipbuilding capacity, particularly for smaller vessels traditionally built in British yards. Others have defended the approach as reflecting long-standing commercial practice within global shipbuilding markets.
The MoD said it remains committed to supporting the UK maritime sector, pointing to recent export success in the warship sector, including BAE Systems securing a £10 billion contract for Type 26 anti-submarine frigates, supporting thousands of jobs across Scotland and the wider UK.
UK Defence Journal has contacted Serco and Damen for further clarification on where the vessels will be built and which shipyards will be used. As of publication, no additional detail has been released.
If the contract went abroad then there would have to be a concrete order and have to be paid for!something this lot seems afraid to do.
Serco would place the contract
Serco has traditionally gone to Damen for the replacement of the Blue ensign fleet but why?
Is it because they shear common stake holders like Bank of America, Mite, Vanguard and Black Rock to name just a few keeping the money in the family so to speak. This would be semi acceptable if the stake holders paid their dividends into the UK but they do not, America proffits directly from money being spent for the UK’s armed forces (the Blue ensign fleet support the RN).
The Government states that the UK yards are already full with orders like T26 and T31 this is true for the larger ship builders but companies like McDuff who specialise in building fishing boat (and tugs) are looking for work due to the down turn in the fishing industry so would profit directly from just a part order but there is none on the horizon.
We also have to ask the question who in parliament proffits the most from these decisions, follow the money, I think we will find that most of our political elite on all sides of the house have quite a divers portfolio and quite a number have seats in other houses and institutions.
Or they build tugs
That!
It is as simple as that!
They build exceedingly good tugs without a doubt but so could we (UK yards) if we had the investment.
There’s not the economic demand for tugs to make building in the UK at the UK’s labour costs viable. Any yard would have single customer that would only have work once every 20 years. There’s a reason why labour intensive low value added industry doesn’t happen in countries with high labour costs.
McDuff have been building fishing boats and tugs for quite some time and there are quite a number of small boat builders around the UK that have the capacity to build tug sized vessels and I think you will find they build to a high speck and to a comparative price, may-be not a low as Damen but if they were given large orders then they could bring down their prices and expand their busines. As I mentioned above however this is not about competitive pricing or keeping the UK ship/boat building alive it is about who shears the proffits from these orders.
Yet you say your self that investment is needed. The problem that you have show a return on investment for it to be an investment. If there was money to be made it would have been done on a commercial basis. Pouring taxpayers money into non commercial projects is waste of taxpayers money
And using tax payers money to feather your own nest, is that OK then.
What’s hard to understand. If it was commercially viable to build tugs in the UK then someone would have invested the money. Its not. You want to spend the defence budget on building and maintaining facilities that would be used every 20 years. There’s far more important things to spend the budget on, for an example warships. You can’t have your cake and eat.
McDuff builds tugs as well as fishing boats but they get continually over looked as the people giving the orders in companies like Serco are told to give their orders to Damen as Damen and Serco are owned by the same group of companies and that group of companies also own a good percentage of other MoD contractors so that every time there is an order the profit from that order goes to America.
Yes Damen make good tugs but we could also be making good tugs at comparative rates if our smaller yards were allowed to compete in the market.
Well, it’s a good thing nobody got upset about that, then.
They saving their energy for the Chinese Embassy announcement……
That one is absurd. There’s something seriously amiss if that goes through.
The mood music is that Starmer will give it the go ahead. He needs to be reined in. What’s required now is that Streeting and / or Burnham make public statement that if they were PM they would insist on the plans being reduced.
These new vessels will have it easy for the first few years.
No one gave much thought to this contract. What changes? If Serco won and the MoD signed, then how Serco delivers is up to the company. ‘Am I the only person who reads around here?’ (As nobody in Whitehall asked ever).
How much extra tax do you want to pay so you have your perfect world
I find that comment very obscure.
Why do think budgets don’t have to be paid for? Seco will charge more money if you increase its costs. Its not rocket science.
I think you mean Serco.
For clarity I repeat the crucial sentence. ‘If Serco won and the MoD signed, then how Serco delivers is up to the company.’
Every time I see the artist impression of the Dreadnaught I think somebody should paint windows on the front. It definitely has a Seaview vibe especially with the X form tail.