3 minute read - 24th January 2025
Rolls-Royce awarded £9bn MoD submarine contract
Rolls-Royce has signed the biggest UK Ministry of Defence (MoD) contract in its history. The eight-year contract, called Unity, brings together all elements of research and technology, design, manufacture, and in-service support for the nuclear reactors that power the Royal Navy’s fleet of submarines.
Unity will enable an improved focus on simplification and efficiency, streamlining decision-making and fostering close partnerships with industry. It represents a significant undertaking and investment by the UK government and industry, securing thousands of highly skilled jobs across the country and demonstrating an enduring commitment for the decades ahead.
Rolls-Royce designs, builds and maintains all of the nuclear reactors that power the Royal Navy’s fleet of submarines. This eight-year Unity contract is worth circa £9bn and will provide full support of the in-service UK Royal Navy submarine fleet throughout the period. It also includes continued support for the building and commission of Dreadnought Class submarines and the beginning of the previously announced SSN-AUKUS contracts.
Rolls-Royce has signed the biggest UK Ministry of Defence contract in its history worth £9bn / Picture: BAE Systems
The Unity contract will create an additional 1,000 new roles within Rolls-Royce Submarines by the end of the contract. These will predominantly be seen in Derby but also includes recently announced satellite offices in Glasgow and Cardiff.
The contract is the first of its kind awarded by the UK MoD and is the culmination of years of planning between Rolls-Royce and the UK MoD, potentially creating a new way of doing business between government and industry. It signposts the UK’s commitment to the continuous at-sea nuclear deterrent and Rolls-Royce’s continuing dedication to the UK Royal Navy and the Defence Nuclear Enterprise. With a long-term commitment across the Rolls-Royce Submarine programmes, Unity draws together current and upcoming work into one portfolio. It is designed to incentivise an even more collaborative working relationship between Rolls-Royce and the UK MoD.
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 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.”
The contract will create an additional 1,000 new roles within Rolls-Royce Submarines by the end of the contract, predominantly in Derby (pictured), but also includes recently announced offices in Glasgow and Cardiff / Picture: Rolls-Royce
John Healey MP, defence secretary, added: “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 that equip the thousands of submariners that keep us all safe. We are showing that 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.”
Meeting the growing requirements of the UK Royal Navy is of the utmost importance to Rolls-Royce Submarines, enabled through a highly skilled national workforce. This provides resilience and proactive collaboration more broadly across the UK nuclear industry and nurtures home-grown talent. Investing in nuclear expertise is critical for the UK, as demand for this talent increases across both defence and civil industries.
The Unity contract also brings opportunities to the supply chain, the vast majority of which is in the UK. The ability to develop long-term, strategic relationships with long lead times means more capability, a longer lookahead, and more competition in the supply chain, enhancing the benefit to the UK economy.
