Under the deal with the Ministry of Defence, the British engineering company will make nuclear submarine reactors for the Royal Navy.
ADVERTISEMENTRolls-Royce Submarines Ltd, a subsidiary of aerospace and defence giant Rolls-Royce Holdings, has secured a multi-year defence contract to produce nuclear submarine reactors for the Royal Navy. This is Rolls-Royce’s largest ever deal with the UK Ministry of Defence.
The contract, named Unity, is worth about £9 billion (€10.67bn), and is expected to span more than eight years, with Rolls-Royce manufacturing, designing and offering support services for every nuclear reactor powering the Royal Navy’s submarine fleet.
This deal is expected to create more than 1,000 roles, while also protecting another 4,000 jobs and is likely to go a long way in enhancing the UK’s economic growth and national security.
The Unity contract will help simplify the Royal Navy’s operations, while also enhancing its efficiency. The deal will also include ongoing support for the commissioning and building of the Dreadnought Class submarines.
Steve Carlier, the president of Rolls-Royce Submarines, said in a statement on the company’s website: “This long-term contract enables us to invest in the right skills, equipment and facilities to play our part in protecting UK interests at home and overseas.
“The Unity contract enables our business to work truly collaboratively with the Ministry of Defence, meeting the evolving needs of the UK Royal Navy, further improving reactor plant design, delivery and in-service support, ensuring the continuing security of our nation at a time of global uncertainty.”
Sir Chris Gardner KBE, the chief executive officer (CEO) of the Submarine Delivery Agency (SDA), said: “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.
Sir Chris highlighted that the contract was expected to give Rolls-Royce a more robust contractual security, while also allowing it to develop and plan for its current and future workforce.
Rolls-Royce deal expected to bolster domestic UK nuclear sector
This new Rolls-Royce Submarines Ltd deal comes at a time when several Western countries are attempting to ramp up their defence and nuclear spending, amid increased global geopolitical tensions.
The new US president, Donald Trump, has called for Britain and other North Atlantic Treaty Organisation (NATO) members to allocate about 5% of their gross domestic product (GDP) on defence spending.
John Healey MP, the UK Defence Secretary, said in a statement: “This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security.
“In line with our upcoming defence industrial strategy, this deal with Rolls-Royce, a historic British success story, will support high-skilled UK 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.”
Healey pointed out that national security was crucial to the current UK government’s plans for change, with the Rolls-Royce deal being seen as an important commitment to the country’s nuclear deterrent.
