Rolls Royce Wins £9bn Nuclear Sub Deal

Rolls Royce has secured a £9 billion contract with the U.K. Ministry of Defence (MoD) to supply and maintain the nuclear reactors powering the Royal Navy’s new Dreadnought and SSN-AUKUS submarines.

The firm said the “Unity” deal, which spans eight years, represented the biggest U.K. MoD contract in its history. The agreement covers R&D, manufacture and in-service support for the whole Royal Navy submarine fleet. According to the MoD, the deal will create 1,000 new jobs and secure the future of 4,000 more.

Rolls-Royce said the Unity agreement will bring savings and efficiencies across the programme and would also include the commencement of works on the SSN-AUKUS contracts.

Defence Secretary John Healey is today (Friday) due to visit Rolls-Royce’s nuclear reactor production facility in Derby. He was expected to reaffirm the Government’s intentions to continue its AUKUS collaboration with the U.S. and Australia and to maintain the U.K.’s independent nuclear deterrent via the construction of four new Dreadnought-Class submarines at BAE Systems’ facility in Barrow-in-Furness.

Three boats — Dreadnought, Valiant, and Warspite — are already under construction, with the lead vessel in the class expected to be commissioned in the early 2030s. All will carry Trident II nuclear missiles. The Dreadnought-class vessels are scheduled to replace the existing Vanguard-class of ballistic missile submarines currently in service.

The Defence Secretary said of the new deal: “This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security. 

“In line with our Plan for Change, this deal with Rolls-Royce, a historic British success-story, will support high-skilled U.K. jobs who equip the thousands of submariners that keep us all safe. We are showing defence can be an engine for growth, while also driving better value for taxpayer money.

“National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world.”

And President of Rolls-Royce Submarines Steve Carlier commented: “We’re delighted to announce the Unity contract, which confirms our commitment to the Royal Navy and the Defence Nuclear Enterprise.

“This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting U.K. interests at home and overseas.”

Submarine Delivery Agency CEO Sir Chris Gardner added: “The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability.

“Bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future.”

• You can read more details on the U.K. MoD website and the Rolls Royce website