Britain Awards Rolls-Royce 9 Billion Pound Contract to Design and Build Nuclear Reactors for Submarines
Britain has awarded Rolls-Royce a contract worth 9 billion pounds (approximately 11 billion dollars) to design, make, and support the nuclear reactors that power its fleet of submarines. The eight-year contract will strengthen the Royal Navy’s continuous at-sea deterrent, which involves at least one nuclear-armed ballistic missile submarine patrolling the seas at all times.
The contract, called Unity, will also support work on the Dreadnought class of nuclear submarines currently being built by BAE Systems. Unity is expected to create 1,000 jobs and safeguard 4,000 others, according to the government. The deal is also expected to save Britain 400 million pounds over eight years by combining multiple contracts into one.
The contract was announced amid US calls for NATO members, including Britain, to increase defence spending to 5% of their gross domestic product (GDP). The UK government has pledged to increase defence spending to 2.5% of GDP, but has not provided a timeline for reaching this target. The government is currently conducting a Strategic Defence Review, which is expected to be published in the spring and will outline the route to reaching the 2.5% spending level.
Defence Minister John Healey hailed the contract as a “boost to British jobs, British business, and our nuclear deterrent”. He also praised the contract for showing how defence can be an engine for economic growth in the country. The contract with Rolls-Royce is expected to be a key part of the UK’s plans to boost its defence industry and increase its capabilities in the face of rising tensions with Russia.
