British Type 26 frigates to strengthen Norway’s coastline – and boost Scotland’s shipyards
A rugged fishing boat drifts slowly in the evening light near Oslo’s harbor. Inside the government building, Prime Minister Jonas Gahr Støre declares: “The frigates are an essential part of our defense because they are crucial to defend our sovereignty.” On Sunday, August 31, 2025, Norway announced it had chosen the United Kingdom as its strategic partner for the purchase of new frigates. The largest defense investment in the country’s history is now underway.
Why the uk, why now
In a competition that also included Germany, France and the United States, the choice ultimately fell on BAE Systems’ Type 26 frigates – also known as the City-class – built in Britain. Støre emphasized the historic cooperation between Norway and the UK, an alliance he considers vital in times of rising tension in the North Atlantic.
Norway patrols a maritime area of more than two million square kilometers, where Russia’s Northern Fleet operates nuclear submarines from the Kola Peninsula. The new frigates will primarily be tasked with monitoring those submarines.
What’s in the contract
The deal is valued at roughly £10 billion, or about $13.5 billion. By the early 2030s, a joint fleet of thirteen anti-submarine warfare frigates – eight British and at least five Norwegian – will operate together in Northern Europe.
A key element is industrial cooperation: the Norwegian government guarantees that the full value of the contract will be mirrored by orders for Norwegian companies. For the UK, the agreement means an estimated 4,000 jobs, about 2,000 of them in Glasgow. More than 400 British suppliers will be involved overall.
What it means for norway
Norway has 5.6 million inhabitants and currently operates four frigates. This order will add five more, with an option for a sixth. Støre calls it “the biggest purchase to date” and part of the long-term plan to structurally expand the country’s defense capacity.
Stock market and analysis
BAE Systems (BAES.L), August 31, 2025
- Closing price: 1,757.50 pence
- Day range: 1,753.00 – 1,792.00 pence
- 52-week range: 1,127.50 – 1,998.50 pence
The share price remains strong above its yearly low and close to the day’s high, reflecting investor confidence. The Norwegian order underscores the international appeal of the Type 26 class and supports employment at Scottish shipyards. For investors, it is a signal of stability in a geopolitically uncertain market.
