Rolls-Royce wins a £9 billion defence contract from the UK government

January 24, 2025 — A landmark £9 billion contract has been awarded to British engineering giant Rolls-Royce to support the Royal Navy’s fleet of nuclear submarines.

Defence Secretary John Healey MP announced the contract today during a visit to Rolls-Royce’s nuclear reactor production facility in Derby. The agreement will see Rolls-Royce Submarines Ltd deliver design, manufacturing, and support services for the nuclear reactors that power UK’s underwater fleet.

Economic Growth and National Security Hand-in-Hand:

The contract is expected to create over 1,000 new UK jobs and safeguard a further 4,000, providing a significant boost to the economy. The deal also streamlines previous contracts, incentivizing more efficient delivery and resulting in over £400 million in savings for taxpayers over the eight-year duration.

“This investment in Britain’s defence will deliver a long-term boost to British business, jobs, and national security,” said Defence Secretary Healey. “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.”

Industry and Government Collaboration:

The eight-year contract provides long-term certainty for Rolls-Royce and its supply chain, fostering resilience and capability. It also promotes closer collaboration between industry and government, aligning with the aims of the upcoming Defence Industrial Strategy. This partnership is seen as essential for the success of the UK’s defence capabilities.

Steve Carlier, President of Rolls-Royce Submarines, expressed his delight at the announcement, stating: “This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting UK interests at home and overseas.”

Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency, added: “The signing of the Unity contract is a key milestone… bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future.”

This major investment in the UK’s nuclear submarine program underscores the government’s commitment to national security and economic growth, while also strengthening international partnerships, including the AUKUS agreement with the USA and Australia.

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