Rolls-Royce Secures £9 Billion Deal for Nuclear Submarine Reactors

Significant Contract with UK Ministry of Defence to Support Submarine Fleet and Create Jobs

A £9 billion deal has been reached between the UK's Ministry of Defence and Rolls-Royce for the production of nuclear submarine reactors, marking the largest contract agreed between the two entities.

Named the Unity contract, the agreement was announced by Defence Secretary John Healey during a visit to Rolls-Royce's nuclear reactor production facility in Derby.

The contract is expected to create over 1,000 new jobs in the UK and protect 4,000 existing roles.

Rolls-Royce, already engaged in expanding its submarine division, will focus on enhancing the design, manufacturing, and support services for nuclear reactors under the Unity contract.

The government highlighted the deal's efficiency and environmental focus, anticipating savings of £400 million through streamlined contracts and incentives.

The Unity contract includes support for the current UK Royal Navy submarine fleet and the construction and commissioning of new Dreadnought Class submarines.

It also marks the beginning of contracts tied to the Aukus defence alliance, a trilateral security pact involving the UK, US, and Australia.

Announced in March 2023, this pact involves the joint development and sharing of nuclear submarine technology among the three nations, with the submarines to be built in both Britain and Australia.

The new Nuclear Skills Academy, opened by Rolls-Royce in Derby in 2022, will provide 200 apprenticeships annually for at least the next decade, supporting skills development essential for the Unity contract.

During the announcement, Defence Secretary Healey emphasized the integral role of Derby and Rolls-Royce in the UK's defence strategy, referencing the city's historical contribution to national security and its significance in current defence plans.

The agreement follows Healey's recent warning in Parliament regarding potential threats from Russia, emphasizing the strategic importance of strengthening the UK's maritime defence.

Rolls-Royce Submarines President Steve Carlier expressed commitment to supporting the Royal Navy and the Defence Nuclear Enterprise through the Unity contract.

The company is also expanding its facilities in Derby, including new warehouses at Pride Park.

The deal was welcomed by industry leaders, political figures, and union representatives.

Sharon Graham, General Secretary of the Unite union, recognized the positive impact on British jobs and the economy, while Derby South MP Baggy Shanker hailed it as a landmark agreement beneficial for both job creation and taxpayers.