Driven by the U.S. Navy’s plan to station more ships in San Diego and its own plans to grow, BAE Systems Ship Repair recently leased more than 100,000 square feet of new space in the South Bay.
The business signed a five-year lease on a 110,000-square-foot warehouse at 1650 Industrial Blvd. in Chula Vista, according to a company spokesman. Financial terms of the deal were not released.
Up to 150 employees from the Barrio Logan shipyard will relocate to the warehouse, the spokesman said. BAE Systems Ship Repair employs 2,000 people.
The business will soon expand its Barrio Logan shipyard with a new, 950-foot-long dry dock — larger than any dry dock the yard has now, with a capacity of 55,000 tons.
Both BAE and neighbor General Dynamics NASSCO have seen benefits in getting certain functions out of their Barrio Logan shipyards and into satellite facilities.
The BAE shipyard is part of U.K.-based BAE Systems, which is a diversified defense contractor. It holds major contracts to repair and maintain U.S. Navy cruisers, destroyers, mine counter measure ships and certain amphibious ships.