A groundbreaking £9bn deal between the Ministry of Defence (MOD) and Rolls-Royce has been announced, marking the largest-ever agreement between the two entities.
The contract, named Unity, is set to revolutionize the design, manufacture, and support services for nuclear submarine reactors, improving efficiency and making the process more environmentally friendly.
The announcement, expected on Friday by Defence Secretary John Healey, will take place during a visit to Rolls-Royce’s nuclear reactor production facility in Derby.
The eight-year contract aims to streamline existing arrangements and deliver savings of up to £400m.
The agreement not only covers support for the UK Royal Navy’s current submarine fleet but also includes the development of new Dreadnought Class submarines, as well as the initiation of contracts tied to the Aukus defence alliance.
This partnership, announced in March 2023, involves the UK, US, and Australia collaborating on the construction of nuclear submarines using technology from all three nations. Rolls-Royce will play a critical role in providing reactors for this new fleet.
This monumental deal is expected to have significant economic benefits, including the creation of over 1,000 new jobs within the UK.
An additional 4,000 existing roles are anticipated to be safeguarded as part of the initiative. The deal underscores the government’s commitment to reinforcing national security while supporting high-skilled British jobs in the nuclear industry.
In Derby, Rolls-Royce is already expanding its submarine division. The company recently opened new warehouses in the area as part of its broader growth strategy.
The new expansion includes the doubling of the size of its Raynesway site and a move into custom-built warehouses in Pride Park.
Rolls-Royce is also committed to ensuring the future workforce is well-equipped to handle the technological demands of nuclear submarine production.
The company opened a Nuclear Skills Academy in 2022, with the goal of providing 200 apprenticeships annually for the next decade.
During his visit, Healey will highlight the UK’s “triple-lock” on nuclear deterrence.
This policy includes the construction of four new nuclear submarines in Barrow-in-Furness, maintaining the UK’s continuous at-sea deterrent, and ensuring the delivery of future upgrades to the fleet.
He emphasized that the new deal would contribute to Britain’s defense strategy while providing a long-term boost to both business and employment.
“We are showing that defense can be an engine for growth, while also driving better value for taxpayer money,” Healey said. His sentiments were echoed by Steve Carlier, President of Rolls-Royce Submarines, who expressed enthusiasm for the Unity contract.
“This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting UK interests both at home and abroad,” Carlier noted.
The Unity contract aligns with the UK’s broader defense strategy, which seeks to enhance its submarine capabilities while simultaneously bolstering the domestic workforce and ensuring the country’s nuclear deterrent remains secure and operational.
The partnership between the MOD and Rolls-Royce is poised to play a pivotal role in the UK’s defense and industrial future, reflecting a historic commitment to technological advancement and national security.
