THE Type 26 Global Combat Ships will secure work on the Clyde for many years and the investment in the Govan and Scotstoun yards ensures a future for shipbuilding in Glasgow.
The importance of these contracts, however, extends far beyond the river where they will be built and launched.
The contracts for equipment, technical expertise and materials which will be used in the construction are a lifeline to many other firms, customers of BAE who are building the ships for the Royal Navy.
It ensures thousands of other skilled workers have contracts and firms have orders which helps them survive and grow.
The reliance of the Clyde shipyards on MoD orders has been obvious for decades now and with each contract the workers breathe a sigh of relief.
That sigh turns into opportunities for many other firms in Glasgow, the West of Scotland and far beyond.
The value of the first tranche of contracts worth £170m shows the importance of the Clyde yards not only to Glasgow but to Scotland.
In Glasgow we have always known the significance of our shipbuilding industry and the value of it being a modern industry with a future and not being allowed to become a relic of an industrial past.
The yards, and the skills and expertise of the men and women who work there is a huge economic asset for Glasgow and for Scotland.
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