Rolls-Royce has secured a landmark £9bn submarines contract, set to generate 1,000 jobs and marking the largest deal ever with the º£½ÇÊÓƵ Ministry of Defence (MoD).
Spanning eight years, the Unity contract encompasses research and technology, design, production, and maintenance support for the nuclear reactors that propel the Royal Navy’s submarine fleet, as reported by .
The Derby-based FTSE 100 heavyweight is responsible for the design, construction, and upkeep of all nuclear reactors for the Royal Navy's submarines. Additionally, this agreement includes ongoing support for the construction and commissioning of Dreadnought Class submarines and initiates work on the previously disclosed SSN-Aº£½ÇÊÓƵUS contracts.
Steve Carlier, President of Rolls-Royce Submarines, expressed his enthusiasm: "We’re delighted to announce the Unity contract, which confirms our commitment to the Royal Navy and the Defence Nuclear Enterprise."
He further highlighted the significance of the contract, stating, "This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting º£½ÇÊÓƵ interests at home and overseas."
Carlier also emphasised the collaborative nature of the relationship with the MoD: "The Unity contract enables our business to work truly collaboratively with the Ministry of Defence, meeting the evolving needs of the º£½ÇÊÓƵ 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."
Defence Secretary, John Healey MP, has highlighted the dual benefits of a new investment in Britain’s defence capabilities, saying: "This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security."
He further added that this aligns with the imminent defence industrial strategy and praised the partnership with Rolls Royce as a driving force for job creation.
"In line with our upcoming defence industrial strategy, this deal with Rolls Royce, a historic British success-story, will support high-skilled º£½ÇÊÓƵ 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 underlined national security as a cornerstone of government policy and emphasised that this move reinforces the º£½ÇÊÓƵ's commitment to its nuclear deterrent amidst growing global threats. "National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the º£½ÇÊÓƵ’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world."
The contract, known as the Unity Contract, is set to create 1,000 positions within Rolls-Royce Submarines by the end of the term, with primary roles located in Derby and additional opportunities at newly announced offices in Glasgow and Cardiff.
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency (SDA), commented on the significance of the Unity contract, noting its role in reinforcing the partnership between the SDA and Rolls-Royce. "The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability."
He elaborated on the contract's aim to consolidate existing commercial arrangements into a commitment poised to enhance operational effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarine operations now and going forward.
"It will also enable a critical pipeline of home-grown nuclear skills and provides Rolls-Royce with the longer-term contractual security to plan and develop the existing and future workforce."
