BAE Systems PLC (LSE:BA.) shares rose 2.5% on the back of a £10 billion deal announced by the UK Ministry of Defence to sell warships to Norway.
The Type 26 frigates will be built at the FTSE 100 group's Glasgow shipyards, with the supply chain and construction expected to boost 432 businesses around the UK.
Babcock International PLC (LSE:BAB), a key supplier, providing weapons handling systems for the warships, and Rolls-Royce Holdings PLC (LSE:RR.), which has supplied steering gears and stabilisers, also saw their shares.
The anti-submarine warfare ships are part of a long-term strategic relationship between the UK and Norway to detect, track and defeat hostile submarines across NATO's northern flank.
A new UK-Norway defence agreement is expected to be signed soon.
BAE chief executive Charles Woodburn said: "The Norwegian government’s decision reflects its confidence in British industry’s ability to deliver a superior anti-submarine warfare platform, together with systems and equipment, that will support its future maritime security and reinforce its position within NATO.
"We look forward to playing our part in further strengthening the strategic partnership between the UK and Norway, as we work together with Norwegian industry to deliver this important capability to the Royal Norwegian Navy."
BAE shares rose 45.5p to 1,803p, around three-week highs after they retreated from June's all-time high of almost £20.
Babcock shares were up 2.3%, while Rolls climbed 2.7%, also boosted by reports about its small nuclear arm.
** Update: Adds details **