The new firm incorporated the BAE Systems Surface Fleet Solutions operated shipyards at Scotstoun and Govan on the River Clyde in Glasgow and the VT Shipbuilding facilities within the Naval Base at Portsmouth.
[8][9] The Terms of Business Agreement (ToBA) finally signed in July 2009 promised a minimum level of ship build and support activity of around £230 million/year to sustain a warship industry in the UK.
[11] Explaining the rationale for the joint venture from VT Group's perspective, its CEO Paul Lester described shipbuilding as a "lumpy" business, dependent on large contracts placed at irregular intervals.
"[9] BAE and VT concluded the merger discussions in early 2008, however creation of BVT Surface Fleet was conditional on the signing of contracts for the Queen Elizabeth-class aircraft carriers.
BAE Systems Surface Fleet Solutions also operated an additional project management centre at Filton in Bristol, situated close to key stakeholders at MoD Abbey Wood, which was transferred to BVT.
At the time of BVT's creation, VT Group was expected to eventually sell its minority share to BAE Systems through a put option, but not within three years.
In 2007 BAE produced a concept for a UXV Combatant based on a destroyer hull for the operation of unmanned land, air and sea systems.
[23] BAE Systems Maritime inherited the £400 million Khareef-class corvette project from VT Group, which will see three 99 m (324 ft 10 in) ships delivered to the Royal Navy of Oman[24] in 2013–14.
A technology transfer agreement with Bangkok Dock to build a similar 90 m (295 ft 3 in) OPV, HTMS Krabi, for the Royal Thai Navy was agreed in June 2009.
BAE was initially part of a consortium bidding for the Military Afloat Reach and Sustainability (MARS) programme, which was to see up to six replenishment at sea tankers built for the Royal Fleet Auxiliary.
BAE was partnered with BMT Defence Services and Daewoo Shipbuilding & Marine Engineering – the eventual winners – for the project, but subsequently withdrew from the consortium before the final round.