Michael Fallon: Brexit could boost UK's shipbuilding industry

The British naval industry must seize trade opportunities provided by Brexit and become a leading producer of ships for export, Defence Secretary Michael Fallon has said.

Writing in the Herald, Fallon said shipbuilding would be a vital part of the government's strategy to rebalance the economy after the UK's exit from the European Union.

The remarks come as industrialist Sir John Parker prepares to make his recommendations to the government on the UK's future shipbuilding strategy.

The report, due to be released on 29 November, calls for component parts to be made all around the UK to curb the dominance of BAE Systems' shipyards on the Clyde, according to the Financial Times newspaper.

"One of the opportunities that Sir John identifies is the way Scotland's cutting edge technology can allow for modular construction, where component ship parts can be produced across the UK before being assembled at a central hub," Fallon wrote.

"There is already a vibrant shipbuilding and marine engineering sector in Scotland but we are committed to seeing that grow even stronger, with a new focus on exports."

A ministry of defence official told the Financial Times that the government was keen to reduce its reliance on BAE Systems when it came to naval contracts.

"To relentlessly focus on one supplier ultimately poses problems both for them and for us," the source said.

"It's not necessarily going to help with innovation and entrepreneurship and with a big focus on one supplier you don't end up helping to grow the industry and you can stultify it."

Eight Royal Navy Type 26 frigates are due to be built on the Clyde at a cost of £8bn ($9.9bn), safeguarding around 3,000 jobs.

Fallon said: "We are committed to deliver a national shipbuilding strategy. We see it as a vital part of our industrial strategy to rebalance Britain and deliver an economy that works for everyone, not just a privileged few."