A major deal, worth approximately £9 billion, has been struck
with British firm Rolls-Royce to bolster support to the Royal
Navy's fleet of nuclear submarines, boosting national security
and economic growth and delivering on the government's Plan for
Change
Creating more than 1,000 UK jobs and safeguarding 4,000 other
roles, the contract with Rolls-Royce Submarines Ltd – dubbed
‘Unity' - will deliver the design, manufacture and support
services to nuclear reactors to power
our submarines.
Defence Secretary, MP will announce the deal today
on a visit to Rolls-Royce's nuclear reactor production facility
in Derby. Alongside backing thousands of UK roles, the agreement
also streamlines previous contracts and incentivises more
efficient delivery, resulting in better value for money for the
taxpayer through savings of more than £400 million over the
eight-year contract. As part of our national endeavour to
maintain a continuous at-sea deterrent, this agreement will help
streamline decision-making and foster the kind of close
partnership between industry and government that is essential to
our success.
The announcement bolsters Britain's security as a foundation of
the Government's Plan for Change, and strengthens the historic
AUKUS partnership with the USA and Australia. In line with the
upcoming Defence Industrial Strategy, Unity will drive
significant UK economic growth over many years.
In Derby today, will speak with staff and
apprentices, and use the visit to reinforce the Government's
commitment to the ‘triple-lock' on the nuclear deterrent, which
includes: building four new nuclear submarines in
Barrow-in-Furness, in Cumbria; maintaining our continuous at sea
nuclear deterrent; and delivering all future upgrades
needed.
Defence Secretary, MP said:
“This investment in Britain's defence will deliver a long-term
boost to British business, jobs and national security.
“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.
“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.”
The eight-year contract represents long-term certainty for a
major British business, building in resilience and capability
across the supply-chain. This will generate more efficiency and
allow for effective risk and opportunity management, providing
incentives to produce more for no increase in cost, including on
work such as the building of Dreadnought Class submarines.
The agreement will also help streamline decision-making and
foster close partnership with industry, supporting the aims of
the new Defence Industrial Strategy.
Steve Carlier, President Rolls-Royce Submarines
said:
“We're delighted to announce the Unity Contract, which confirms
our commitment to the Royal Navy and the Defence Nuclear
Enterprise. 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.”
The Government is committed to the nuclear deterrent triple Lock:
- Building four new nuclear submarines in Barrow-in-Furness,
supporting high-quality, high-status apprenticeships and jobs,
with the supply chain benefits being felt right across the
country.
- Britain maintaining its continuous at-sea deterrent, 24 hours
a day, 365 days a year – securing protection for both the UK and
NATO allies.
- The delivery of all future upgrades needed for those
submarines to patrol the waters and keep our country safe.
ENDS
Notes to Editors
·
Part of the significance of the contract is that it will replace
obsolete capabilities with safer and more sustainable
alternatives, reducing waste generation and more responsible
consumption of materials, to support the Defence commitment to
environment performance improvements.
·
It will make the UK capability for submarine reactors more
effective and resilient in achieving our needs, whilst also
supporting our AUKUS partnership.
·
The DNE is a partnership of organisations that operate,
maintain, renew and sustain the UK's nuclear deterrent. It
includes DNO, Royal Navy, Submarine Delivery
Agency and Atomic Weapons
Establishment.
Sir Chris Gardner KBE, CEO Submarine Delivery Agency
said:
“The signing of the Unity contract is a key milestone in the SDA
and Rolls-Royce partnership, building resilience, collaboration,
and capability.
“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.”
