The facility will play a key role in helping to ensure the long-term future of its ship building business.
In a statement, BAE said there are two potential investment options ahead of public consultations which are due to be held next week.
The first option, a single site strategy, involves constructing a new state-of-the-art manufacturing facility at Scotstoun, while the second option, a two-site strategy, involves expanding and improving existing facilities at Govan and Scotstoun.
With the first option, construction work would include building a new 330m covered modern dock hall, steelwork preparation facility, steelwork fabrication facility, paint cell, supporting offices and employee welfare facilities and a quay, which would enable ship blocks and equipment to be transported by sea.
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Construction would begin in January 2015 and be scheduled for completion in 2017.
Under the second option, construction work at Govan would include extensions to the existing fabrication and main ship build halls. A new paint cell and outfit hall would also be constructed and the existing berth would levelled to create a new transfer quay.
Construction work at Scotstoun would include upgrades to the dry docks and strengthening of the deep water berth to support mobile cranes. If selected, construction would be expected to begin at Govan from February 2015 until 2017, whilst work at Scotstoun would take place from 2017 to 2018.
Charlie Blakemore, Business and Transformation Director at BAE Systems Maritime – Naval Ships, said: "Our vision is to create 21st century complex warship capability that will deliver value for money for our customers and attract and retain the very best talent, helping to secure the long-term future of this highly skilled industry in the UK.
"The proposed facilities are a key part of this and will offer significant benefits including modern, safer working environments, increased efficiency and competitiveness, generating a step change in capability.
"We are working with local authorities and the Ministry of Defence to progress the investment proposals and are committed to building a future legacy for our business that we will all be proud of."
The public consultation events will take place on:
• Tuesday 11 February 2014 from 1pm to 7.30pm at GTG Training and Conference Centre
• Thursday 13 February 2014 from 1pm to 7.30pm at The Pearce Institute.
(JP/CD)
