Rolls-Royce awarded £9bn MoD nuclear submarine contract
By Michele Maatouk
Date: Friday 24 Jan 2025
(Sharecast News) - Rolls-Royce said on Friday that it has been awarded the biggest UK Ministry of Defence (MoD) contract in its history.
The Unity contract, which is worth around £9bn, stretches over eight years and brings together all elements of research and technology, design, manufacture and in-service support of the nuclear reactors that power the Royal Navy's fleet of submarines.
The contract is between Rolls-Royce Submarines and the UK MoD and forms "a single, harmonious capability portfolio", it said.
Rolls-Royce said Unity will enable improved focus on simplification and efficiency and better outcomes for the UK Royal Navy.
"It represents a significant undertaking and investment by the UK government and industry, providing thousands of highly skilled jobs across the country and an enduring commitment for the decades ahead," the company said.
The eight-year contract will provide full support of the in-service UK Royal Navy submarine fleet throughout the period. It also includes continued support of the build and commission of Dreadnought Class submarines and the beginning of the previously announced SSN-AUKUS contracts.
Rolls-Royce said it's the first of its kind awarded by the UK MoD and is "the culmination of years of planning between Rolls-Royce and UK MoD, potentially creating a new way of doing business between Government and industry".
Steve Carlier, president of 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 Unity contract enables our business to work truly collaboratively with the Ministry of Defence, meeting the evolving needs of the UK Royal Navy, further improving reactor plant design, delivery and in-service support, ensuring the continuing security of our nation at a time of global uncertainty."
Defence Secretary John Healey said: "This investment in Britain's defence will deliver a long-term boost to British business, jobs and national security.
"In line with our upcoming defence industrial strategy, 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."
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