Babcock Marine plans to expand manufacturing space at its Rosyth shipyard as the defence contractor seeks to strengthen its industrial capacity while facing a critical question over the future flow of naval construction work in Scotland.
The company has submitted plans to extend an existing manufacturing building at Rosyth Business Park in Fife, according to documents lodged with Fife Council.
The proposal, submitted in July and still under consideration, concerns Building 164 on Watt Road and would enlarge an existing production bay while making internal alterations to create additional industrial space.
Although the planning documents do not specify which equipment would occupy the extension, the proposal is relevant to Babcock’s wider investment in production capacity at Rosyth, where automated manufacturing lines and expanded assembly facilities are supporting construction of five Inspiration-class Type 31 frigates for the Royal Navy.
The plans come as Britain’s naval industrial base faces a strategic challenge of expanding the capacity to build sophisticated warships while securing enough long-term orders to sustain the skilled workforce and manufacturing infrastructure required to deliver them.
Panel-line manufacturing is central to modern shipbuilding. Steel plates are positioned, welded and reinforced to produce large structural panels that eventually form sections of a vessel’s hull, decks and internal compartments. Increasing capacity at this stage can allow a shipyard to manufacture more components simultaneously, although overall output also depends on assembly, outfitting, labour availability and the movement of work through the production process.
At Rosyth, these activities feed into the purpose-built Venturer Building, where large sections of the Type 31 frigates are assembled under cover. The shipyard has invested in automated production equipment and expanded recruitment to support the programme, including hiring approximately 300 welders from the Philippines, according to a report by the UK Defence Journal in October 2025.
Yet the next phase of Rosyth’s development will depend on more than new buildings and machinery. It will require a sustained pipeline of contracts beyond the current frigate programme.
John Howie, Babcock’s chief corporate affairs officer, told the House of Commons Scottish Affairs Committee in April that securing long-term work was essential to maintaining the workforce.
“It is really simple: the need for long-term contracts,” he told MPs.
“As a matter of policy, it is never a good thing to take someone on, put them through an apprenticeship but then not offer them a job at the end of it.”
Referring to the Type 31 programme, Howie added: “If you look at the Rosyth example, theoretically by the time the fifth Type 31 is finished, the demand tails off.”
His warning exposes the tension at the heart of Britain’s shipbuilding ambitions. Training welders, developing apprenticeships and investing in industrial capacity require commitments stretching years into the future. Without follow-on orders, a yard can find itself with expensive facilities and a workforce whose skills are difficult to retain.
Babcock is pursuing opportunities to reduce that risk through international sales and submarine manufacturing. Its Arrowhead family of frigate designs has been promoted to overseas customers, including Denmark, although future production would depend on procurement decisions and the industrial arrangements agreed with buyers. Sweden selected France’s Naval Group for its Luleå-class frigate requirement, despite Babcock and Saab offering the Arrowhead 120 design.
Rosyth is also developing work connected to the US Navy’s Virginia-class submarine programme through its relationship with American shipbuilder HII. Babcock said in its May 2026 trading update that an initial engineering contract was under way for complex assemblies associated with Block VI submarines.
The proposed Building 164 extension is part of a broader development picture. Fife Council approved plans in February 2026 for a second major shipbuilding assembly hall behind the existing Venturer facility. The proposed building would measure about 149 metres long, 65 metres wide and 48.5 metres high, with overhead cranes and large access doors. Whether it proceeds will depend on Babcock’s investment decisions and future workload.
The expansion plans also coincide with pressure on the existing Type 31 programme. Babcock has faced delays and additional costs, including a further £140mn charge linked to higher-than-expected rework on the first two frigates. Design changes and construction activities undertaken out of sequence have contributed to the difficulties.
Babcock chief executive Sir Nick Hine has indicated that the first vessel, HMS Venturer, is expected to be delivered in 2028, with delays across the wider programme potentially reaching two years as the company works to limit the impact on subsequent ships.
Babcock has previously outlined ambitions to increase production towards one frigate a year. Achieving that rate would require a dependable flow of work through fabrication, assembly, outfitting and delivery.
The proposed extension is therefore more than a question of additional factory space. It forms part of a wider effort to prepare Rosyth for future naval construction. Whether that investment translates into a lasting expansion of Scottish shipbuilding will ultimately depend on contracts capable of keeping the yard, its equipment and its skilled workforce in continuous use.
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