Rolls-Royce signs £9bn nuclear submarine deal

The Ministry of Defense and Rolls-Royce have agreed a £9bn deal for nuclear submarine reactors – the largest ever deal between the two.

Defense Secretary John Healey will announce the deal during a visit to the firm’s nuclear reactor production facility in Derby on Friday.

The eight-year contract, called UNITY, is designed to make the design, construction and support services for the reactors more efficient and environmentally friendly.

It is expected that it will create more than 1,000 jobs in the UK and secure a further 4,000 roles.

The government said the agreement would streamline previous contracts and incentives and provide more efficient delivery, saving £400m.

As well as providing support to the current UK Royal Navy submarine fleet, Unity includes the construction and commissioning of new Dreadnought class submarines and the initiation of contracts for the new AUKUS defense alliance.

In March 2023, it Announced that Rolls-Royce will provide the reactor A defense deal between the UK, US and Australia for a new fleet of nuclear submarines.

The submarines will be built in Britain and Australia but will use technology from all three countries.

The company opened a new nuclear skills academy in Derby in 2022, designed to provide 200 apprenticeships each year for at least a decade.

Mr Healey will use the visit to highlight the Government’s “triple-lock” on the nuclear deterrent, which includes building four new nuclear submarines at Barrow-in-Furness in Cumbria, maintaining the UK’s continuity in the maritime nuclear deterrent and Including providing for all necessary future upgrades. ,

He said: “This investment in UK defense will deliver a long-term boost to British business, jobs and national security.

“According to us change planThis deal with Rolls-Royce, a historic British success story, will support UK high-skilled jobs, equipping the thousands of submarines that keep us all safe.

“We are showing that defense can be an engine of growth, while also getting better value for taxpayers’ money.”

Steve Carlier, President of Rolls-Royce Submarines, said: “We are delighted to announce the Unity contract, which reaffirms our commitment to the Royal Navy and the Defense Nuclear Enterprise.

“This long-term contract enables us to invest in the right skills, equipment and facilities to play our role in protecting UK interests domestically and overseas.”

Rolls-Royce Submariners is already doubling the size of its Ransway site and has recently started moving into purpose-built warehouses in Pride Park.