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BVT and ADSB form Abu Dhabi Naval Support Joint Venture

ABU DHABI — BVT Surface Fleet, the maritime joint venture between BAE Systems and VT Group, have formed a joint venture in the UAE with Abu Dhabi Shipbuilding to provide world class naval support services for customers in the Gulf Cooperation Council, or GCC Region, Egypt and Jordan.

The new company, Gulf Logistics and Naval Support LLC, or GLNS, will be the first company of its kind in the Arabian Gulf and will offer a range of naval support services across the full spectrum of integrated logistics support and training as well as outsourcing solutions for base facilities to support the marine fleets of navies, coast guards, marine police, homeland security organizations, special forces and other key commercial customers.

The announcement follows the Memorandum of Understanding signed by BVT and ADSB on 20 July 2008. Since then, both companies have been working together to develop and finalise the necessary legal documents, prepare financial and operational business plans and form the organisational structure to allow this new company to begin operations immediately with the support of their two shareholders.

At a Press conference in Abu Dhabi to announce the new company, BVT Chief Executive Alan Johnston said, ‘This is a significant strategic move for BVT. Gulf Logistics and Naval Support will greatly enhance our customer base and global footprint. It will combine our outstanding naval support experience with the world-class and complimentary capabilities of ADSB in the Gulf.

‘Together, we provide a high level of expertise to address the growing demand for enhanced through-life naval support from organisations in the region.’ ADSB’s Chief Executive Officer William Saltzer commented that ‘Military vessels and the equipment carried on board are complex and sophisticated, requiring a high degree of support. GLNS, supported by its shareholders, will provide this support, ensuring the maximum availability of vessels and the efficient operations of their non-core base activities and facilities allowing them to focus their efforts on the important duty of protecting
 their countries.’

GLNS will initially be 70 per cent owned by ADSB and 30 per cent by BVT, with provisions that may allow BVT to increase its holding to 40 per cent
 in the future.