The UK's defence industry has received a major boost as Britain is set to supply Scandinavian nations with warships.
Britain secured a landmark £10billion submarine-hunting frigate agreement with Norway and has now entered advanced negotiations to provide warships to Denmark and Sweden.
The discussions could establish Britain as the primary naval supplier for the entire Scandinavian region.
Sources familiar with the negotiations revealed that an agreement with the Danish government is "very close, almost nailed on".
Sweden's discussions remain "very positive" though more intricate, as Stockholm weighs various British proposals alongside French alternatives.
The potential agreements would significantly expand Britain's defence exports beyond Sunday's Norwegian contract for Type 26 frigates, a deal that saw the UK prevail over competitors from France, Germany and America.
The negotiations reflect strengthening military cooperation between Britain and Scandinavia amid mounting concerns about Russian activities in Arctic and north Atlantic waters.
The negotiations centre on Babcock International's Type 31 frigates, manufactured at Rosyth shipyard in Scotland.
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The negotiations centre on Babcock International's Type 31 frigates
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Denmark seeks three Type 31 "Arrowhead 140" vessels, with an announcement anticipated this month.
Sweden is considering four Type 31 frigates, though a final decision won't come until 2026.
Each vessel carried an average production cost of £250million in 2023, according to Government figures.
The Danish defence minister, Troels Lund Poulsen, said that his intention is to collaborate with an international partner for frigate construction, telling the Berlingske newspaper: "This can be done in many different ways, but what is clear to me is that Denmark cannot do it alone."
Jonas Gahr Store, the Norwegian Prime Minister, spoke to the media on the status of the purchase of British-made frigates
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Norway's agreement covers five Type 26 frigates, described by officials as the "best submarine-hunter on the planet".
BAE Systems will construct these vessels at their Glasgow facilities in Govan and Scotstoun, with deliveries beginning in 2030.
The Ministry of Defence confirmed its commitment to backing Babcock's export negotiations for the Arrowhead 140 design.
On Tuesday, the ministry said: "The Type 31 programme continues to attract significant interest from potential international partners, underlining the strength of the UK defence industry and ship building capability."
The Norwegian contract represents that nation's biggest defence capability investment ever
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The Norwegian contract represents that nation's biggest defence capability investment ever, with the agreement sustaining 4,000 British positions and benefiting over 400 UK firms, including 222 smaller enterprises.
Graeme Downie, Labour MP for Dunfermline & Dollar, emphasised the strategic importance: "Scandinavian countries are key defence partners for the UK and this would further strengthen and deepen those relationships as we work to deter Russian aggression."
The combined British-Norwegian Type 26 fleet will comprise 13 vessels patrolling northern waters to "detect, classify, track and defeat hostile submarines", reinforcing Nato's northern defences.
Following a conversation between Sir Keir Starmer and Jonas Gahr Store, the Norwegian Prime Minister, on Saturday night, where Norway’s decision was revealed, a Downing Street spokeswoman said: "The leaders agreed the decision was an important and historic moment for European security."
She added: "The cutting-edge Type 26 warship would be among the most advanced frigates ever built and would deliver unparalleled interoperability for Norwegian and British forces."
Sir Keir said: "This £10billion deal is what our Plan for Change is about – creating jobs, driving growth and protecting national security for working people.
"This Government has forged new partnerships across the world to deliver for people at home and the export of our world leading Type 26 frigates to Norway will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.
"This success is testament to the thousands of people across the country who are not just delivering this next generation capabilities for our armed forces, but also national security for the UK, our Norwegian partners and Nato for years to come."
Defence Secretary John Healey said the deal 'deepens our strategic partnership' with Norway
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Defence Secretary John Healey said the deal “deepens our strategic partnership” with Norway.
He said: "With Norway, we will train, operate, deter, and – if necessary – fight together.
"Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure.”
Scottish Secretary Ian Murray said the decision shows the “tremendous success” of Scotland’s shipbuilding industry and is an example of another “defence dividend” for the country.