Defence giant Babcock announces new Plymouth base for 2,000 staff

The move is expected to boost the city’s economy

Defence giant Babcock has announced it will be opening a huge new base in Plymouth city centre which will house some 2,000 staff. The company said on Thursday (April 2) its new so-called Capability Centre will be located in the former Dingles and House of Fraser building, on 40-46 Parade.

The new facility will be in addition to the Dockyard and will help “free up vital space” at the Devonport site, according to Babcock.

The engineering business said the move would “significantly increase” footfall in the city-centre, support local businesses and services, and boost Plymouth’s economy

The plans, first announced in June last year, will see some staff transition from Devonport Royal Dockyard to the new facility, which will support the company’s long-term operations.

Harry Holt, deputy chief executive of Babcock said: “Securing a location for our new off‑site facility is a significant milestone.

“Importantly, it will strengthen the capabilities required to deliver this critical work in the defence of our nation. The move reinforces our commitment to Team Plymouth, supporting sustainable prosperity by creating high‑quality jobs, strengthening Plymouth’s economy and accelerating regeneration in the city centre.

“With major investment through the Ministry of Defence in our Devonport co‑located site and new services, including our MoveSmart shuttle bus service, it is an exciting time for Babcock and for Plymouth. We remain committed to this journey with our colleagues, customer and partners, moving forward, together.”

Tudor Evans, leader of Plymouth City Council, said the opening of the centre was “fantastic news for Plymouth” and would deliver “a major boost to people and businesses”.

“It marks an important moment for the city and shows what’s possible when Team Plymouth partners come together,” he said.

Luke Pollard, MP for Plymouth Sutton and Devonport, said the move was a “huge vote of confidence” in the city and its regeneration plans. “By relocating roles into the city centre, this move creates vital space at Devonport for the billions of pounds being invested in new defence infrastructure, equipment, and capability, supporting both our armed forces and the local economy,” he said.

Lord Vernon Coaker, who joined the Ministry of Defence in 2024, added: “With Babcock’s new Capability Centre bringing jobs into the heart of the city, it will boost the local economy and help cement Plymouth’s status as a nationally significant hub for defence, engineering and innovation.

“This is exactly the kind of investment we want to see as part of our wider mission to strengthen UK defence and spread opportunity across the country. The power of collaborative working as part of Team Plymouth will unlock Defence driven growth amongst our partners.”