UK signs $11bn deal with Rolls-Royce to build nuclear submarines
The UK government has signed an $11 billion multi-year deal with Rolls-Royce. The deal is aimed at modernising the Royal Navy's fleet of nuclear submarines.
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The contract is expected to create more than 1,000 new jobs in the UK and save another 4,000, according to a statement from the government under Prime Minister Keir Starmer.
Defence Secretary John Healey, visiting Rolls-Royce's nuclear reactor manufacturing plant in Derby, said the investment would not only enhance national security but also drive economic growth. He added that the UK's defence spending is delivering "better value for money for taxpayers", saving over £400 million.
HMS Vengeance, a Vanguard-class submarine. Image: UK Ministry of Defence
The contract is also a boost for Rolls Royce, which in 2023 announced plans to nearly double the size of its submarine manufacturing plant in Derby to increase production to meet strong demand from the Royal Navy and the AUKUS defence partnership between the UK, US and Australia.
This agreement is another step in strengthening defence cooperation in Europe. In particular, in October, the UK and Germany announced that German submarine-hunting aircraft would start operating from British territory under a joint agreement.
Source: Rolls-Royce
