The Ministry of Defence and Rolls-Royce have reached an agreement for a £9bn deal on nuclear submarine reactors, marking the largest deal to date between the two entities.
Defence Secretary John Healey disclosed the agreement during a visit to Rolls-Royce's nuclear reactor production facility in Derby on Friday.
Named Unity, the eight-year contract aims to streamline the design, manufacture, and support services for reactors, enhancing efficiency and environmental friendliness.
It is anticipated to generate over 1,000 jobs in the UK and protect 4,000 other positions.
The government stated that this deal would consolidate previous contracts and initiatives, leading to a £400m reduction in costs through improved delivery efficiency.
In addition to supporting the current UK Royal Navy submarine fleet, Unity involves constructing and commissioning new Dreadnought Class submarines and initiating contracts for the Aukus defence alliance.
While the submarines will be constructed in the UK and Australia, they will incorporate technology from all three countries.
In 2022, the company inaugurated the Nuclear Skills Academy in Derby, intending to offer 200 apprenticeships annually for a minimum of ten years.
During the visit, Healey underscored the government's commitment to the nuclear deterrent, emphasizing the construction of four new nuclear submarines in Barrow-in-Furness, Cumbria, maintaining the UK's continuous at-sea nuclear deterrent, and delivering all necessary future upgrades.
He stated, This investment in Britain's defense will provide long-term benefits to British businesses, jobs, and national security.
Steve Carlier, president of Rolls-Royce Submarines, remarked, We are pleased to announce the Unity contract, confirming our dedication to the Royal Navy and the Defence Nuclear Enterprise.
This enduring agreement allows us to invest in the requisite skills, equipment, and facilities to contribute to protecting UK interests both at home and abroad.
Rolls-Royce Submarines is currently expanding its Raynesway site and has started moving into purpose-built warehouses in Pride Park.
Sharon Graham, General Secretary of the Unite union, commented, This announcement is positive for British jobs, Derby, and our economy.
Rolls-Royce boasts a first-rate workforce, and the government's decision to invest in it is commendable.
UK defense expenditure should promote high-quality employment and skills, safeguarding our manufacturing sector.
The government should apply the same principles to future significant defense spending decisions, including those concerning fast jet planes and Army helicopters.