BAE Systems have said work is "ongoing" to try and secure a £150m project to build two offshore patrol vessels. It come after the business secretary Vince Cable raised doubts over the plan which could secure 1,300 jobs at its Portsmouth shipbuilding base.
In a statement, BAE said: “We continue to work closely with the Ministry of Defence to explore all possible options to determine how best to sustain the capability to deliver complex warships in the UK in the future.
"This work is ongoing and we are committed to keeping our employees and trade unions informed as it progresses."
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