In a landmark deal for British industry, engineering giant Rolls-Royce has secured its largest ever contract with the UK Ministry of Defence (MOD). The £9 billion agreement will see Rolls-Royce design, manufacture and provide long-term support for the nuclear reactors that power the Royal Navy’s submarine fleet.
Hailed as a major victory for UK manufacturing and national security, the pact, known as ‘Unity’, is expected to create over 1,000 new highly skilled jobs while safeguarding a further 4,000 roles across Rolls-Royce’s operations. The contract will span an eight-year period and result in significant savings of £400 million for the MOD through streamlined delivery and risk management.
Powering the UK’s Nuclear Deterrent
The nuclear reactors built by Rolls-Royce are the powerhouses behind the UK’s Continuous At Sea Deterrent, which has been in operation since 1969. Under this policy, at least one nuclear-armed submarine is always on patrol, providing a constant deterrent and insurance policy in an increasingly unstable world.
“National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world,”
– Defence Secretary John Healey
The Unity deal will enable the efficient delivery of reactor systems for both the current fleet and the next-generation Dreadnought class submarines currently under construction in Barrow-in-Furness, Cumbria. This long-term investment is seen as critical for maintaining the UK’s sovereign defence capabilities.
Investing in Skills and Infrastructure
To support the increased demand, Rolls-Royce has been heavily investing in its nuclear submarine operations. The company recently doubled the size of its Raynesway facility in Derby and opened a new Nuclear Skills Academy in 2022 to train the next generation of engineers. The academy will provide 200 apprenticeships annually for at least the next decade.
“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,”
– Steve Carlier, President of Rolls-Royce Submarines
The deal is a vote of confidence in Rolls-Royce’s submarine division, which has been designing, manufacturing and supporting the Royal Navy’s nuclear reactors for over 60 years. The company’s technology is considered world-leading and will play a central role in the AUKUS pact between the UK, US and Australia to develop a new fleet of nuclear-powered submarines.
A Boost for British Industry
The Unity contract is being celebrated as a major win for British engineering and manufacturing at a time of economic uncertainty. The deal will provide long-term stability for thousands of highly skilled jobs across Rolls-Royce’s submarine supply chain, which spans the length and breadth of the UK.
“This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security,”
– Defence Secretary John Healey
By securing this strategic partnership with the MOD, Rolls-Royce has cemented its position as a key player in the UK’s defence industry. The company’s cutting-edge nuclear technology and engineering expertise will be essential for maintaining the country’s military capabilities and geopolitical influence in the decades ahead.
As the UK navigates an increasingly complex security landscape, the Unity deal ensures that the Royal Navy will continue to have access to the most advanced and reliable nuclear propulsion systems, underpinning the nation’s ultimate insurance policy against global threats. For Rolls-Royce, it represents a resounding endorsement of its world-class workforce and a bright future at the forefront of submarine technology.
