During a visit to Rolls-Royce’s nuclear reactor production facilities in the English town of Derby, the current UK Secretary of Defense, John Healey, announced today that the company has been awarded a new £9 billion contract to support the Royal Navy’s nuclear submarine fleet. The new contract, named “Unity” by the Ministry of Defense, will be the largest ever signed between the parties and represents a significant boost for the trilateral AUKUS alliance.
Expanding on some details, the UK defense ministry estimates that the contract will create more than 1,000 new jobs in the country, while also helping to sustain another 4,000 existing jobs within the company. For now, the contract is set to last for the next eight years, with various objectives including improving the efficiency of Rolls-Royce’s production processes to achieve an estimated £400 million in future savings, as well as seeking more efficient and environmentally friendly nuclear reactor designs.
Commenting on the new agreement, Secretary Healey stated: “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 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”.
It is worth highlighting that his remarks come amid union calls for the procurement of new Eurofighter jets for the Royal Air Force, aiming to preserve a significant number of skilled jobs in the UK’s defense industrial complex. Supporting the recent decision, Unite union General Secretary Sharon Graham stated: “This announcement is good news for British jobs, good news for Derby, and good news for our economy… The UK’s defense spending must be used to promote decent, high-quality jobs and skills and to protect our manufacturing base. The government must now follow the same principles when making major defense spending decisions in the future, including on fast jets and army helicopters.”
In terms of operational capabilities for its nuclear deterrence, it is important to remember that the UK maintains a doctrine based solely on submarine-deployed weaponry, making this investment crucial for the core of its defense structure. Currently, the Royal Navy operates a fleet of Vanguard-class submarines equipped with Trident 2 D5 missiles, which are expected to remain in service until the arrival of the new Dreadnought class in the 2030s.
On another note, regarding the impact of the newly awarded contract on the AUKUS alliance, it should be mentioned that Rolls-Royce will be responsible for designing the reactors for the new fleet of nuclear submarines intended for the Royal Australian Navy. In 2023, the company, alongside BAE Systems and Babcock, received contracts worth over £4 billion to initiate the process, which by 2040 should provide Canberra with its new SSN AUKUS submarines, with the prior delivery of three Virginia-class submarines from the U.S.
Finally, it is noteworthy that Rolls-Royce has already taken steps to expand its industrial network in recent years, with the recent doubling of its Raynesway plant’s size and the construction of new specialized warehouses in Pride Park. Furthermore, in 2022, the company inaugurated a new training center for its employees, known as the Nuclear Skills Academy, which will enable the training of up to 200 new workers annually over the next decade.
Images used for illustrative purposes.
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