Daewoo Shipbuilding & Marine Engineering, South Korea’s second-largest shipbuilder, said Tuesday it had signed a deal with a British defense company to provide production and management consulting services on naval vessels.

Daewoo Shipbuilding will provide BAE Systems Surface Ships with a report by November on proposals for improving its productivity, the South Korean company said in an emailed statement.

BAE is an arm of BAE System Group, the world’s third-largest defense company. It has been trying to improve the effectiveness of its production line and reduce costs after the British government cut its defense spending, Daewoo Shipbuilding said.

In 2012, Daewoo Shipbuilding signed a deal with the British government to provide four warships. (Yonhap)