Babcock International Group plc is a British aerospace, defence and nuclear engineering services company based in London, England. It specialises in managing complex assets and infrastructure. Although the company has civil contracts, its main business is with public bodies, particularly the United Kingdom's Ministry of Defence and Network Rail. The company has four operating sectors, with overseas operations based in Africa, North America, South America, Europe and Australia.
Babcock is listed on the London Stock Exchange, and is a constituent of the FTSE 250 Index.
History
1891 to 1979
Babcock International traces its history back to the 19th century and the American heavy industrial manufacturers Babcock & Wilcox Company, which had been founded in 1867 by partners Stephen Wilcox and George Babcock to manufacture and market Wilcox's patented water-tube boiler. During the 1870s and 1880s, the company, having decided to expand internationally, developed an initial footprint in the British market, centering on cities such as Glasgow, Scotland. On 9 April 1891, Babcock & Wilcox chose to establish a separately financed (capitalised at £250,000 initially) British company, called Babcock & Wilcox Ltd. The initial board members of the British company included the renowned Scottish structural engineer Sir William Arrol and Andrew Stewart, of the Lanarkshire-based steel tube makers A & J Stewart & Menzies, subsequently Stewarts & Lloyds.
Following its establishment, the British company's sphere of operation was defined as 'the world except for North America and Cuba', which was the preserve of the US Babcock & Wilcox venture. Starting in 1885, B&W's steam boilers were manufactured in the Singer Manufacturing Company's Kilbowie Works at Clydebank near Glasgow. Around this time, the inventor and businessman Isaac Singer was a significant and influential shareholder in the business.
During 1895, Babcock & Wilcox Ltd opened a new boilermaking works, based on the site of the Porterfield Forge on the opposite side of the River Clyde near Renfrew. In 1900, the company secured £1.57 million of investment, which was used to finance the expansion of its global presence via numerous overseas subsidiary ventures. During 1913, B&W began its involvement with the Rosyth Dockyard after winning a bid to construct a steam generation plant on the site; this presence served as a starting point for the firm's subsequent extensive involvement in the ship repair sector.
During both the First World War and Second World War, B&W was a major supplier to Britain's defence establishment. During the 1940s, the workforce at Renfrew peaked at approximately 10,000. In the post-war era, the manufacture and support of defence equipment continued to be a long-running and key business area of the company.
Throughout the 20th century, B&W was a major supplier of boilers for power stations. During the 1960s, the company became involved in the development of civil nuclear power stations in the United Kingdom. B&W also continued to diversify internationally, including into the North American market; by 1979, the company's North American subsidiary was being attributed for generating one-third of total sales (£844 million) and more than half of the business's overall profits. That same year, Babcock & Wilcox Ltd was renamed Babcocks International Ltd.
1980–1999
During 1982, Babcock International was floated on the London Stock Exchange, becoming Babcock International PLC. Around this time, subsidiary company Babcock & Wilcox (Operations) Ltd was rebranded Babcock Power Ltd; this division has subsequently become Babcock Energy Ltd. By 1985, Babcock International's turnover had reached £1.1 billion; its subsidiaries were engaged in ventures and projects across the world, typically focusing on its contracting activities. Its materials-handling business, which had been unprofitable since the 1970s, was subject to restructuring efforts and job losses around this period.
During 1987, Babcock merged with rival engineering company FKI Electricals plc, forming FKI Babcock PLC. Shortly thereafter, the newly merged company's head office in London and more than two-dozen plants were closed, causing the loss of around 6,000 jobs, over half of these based in Britain, reducing its workforce to less than 30,000. Several engineering and transport businesses were purchased during this period. During August 1989, FKI Babcock PLC demerged to form Babcock International Group PLC and FKI plc.