Revolutionary Partnership: Rolls-Royce Teams Up with UK Ministry of Defence
Rolls-Royce has finalized the most significant agreement with the UK Ministry of Defence (MoD) in its history. The Unity contract extends over eight years and encompasses every aspect of research and technology, design, manufacturing, and operational support for the nuclear reactors that drive the Royal Navy’s submarine fleet. This partnership between Rolls-Royce Submarines Ltd and the UK MoD establishes an integrated capability portfolio.
Unity will enable a refined emphasis on simplification and productivity, resulting in improved outcomes for the UK Royal Navy. It represents a substantial commitment and investment from the UK government and industry, creating thousands of high-skill job opportunities across the country and a long-term pledge for the forthcoming years. This is undeniably a national initiative.
Rolls-Royce designs, constructs, and sustains all nuclear reactors that supply power to the Royal Navy’s submarine fleet. This eight-year Unity agreement is approximated at around £9 billion and will guarantee all-encompassing support for the operating UK Royal Navy submarine fleet throughout its term. Furthermore, it includes ongoing assistance in the construction and commissioning of Dreadnought Class submarines and the initiation of the previously outlined SSN-AUKUS agreements.
This contract is the first of its kind awarded by the UK MoD and is the result of thorough planning between Rolls-Royce and the UK MoD, potentially paving fresh avenues for cooperation between the government and the industry. It underscores the UK’s dedication to maintaining a consistent at-sea nuclear deterrent and Rolls-Royce’s steadfast commitment to the UK Royal Navy and the Defence Nuclear Enterprise.
With a lasting commitment across Rolls-Royce Submarine initiatives, Unity consolidates existing and future projects into a unified portfolio. It seeks to cultivate an even more collaborative working relationship between Rolls-Royce and the UK MoD.
Steve Carlier, President of Rolls-Royce Submarines stated:
“We’re excited to present the Unity agreement, which reaffirms our pledge to the Royal Navy and the Defence Nuclear Enterprise. This enduring contract enables us to invest in the essential skills, equipment, and facilities necessary to protect UK interests both locally and globally.”
“The Unity agreement allows our enterprise to work cohesively with the Ministry of Defence, accommodating the evolving demands of the UK Royal Navy while further enhancing reactor plant design, delivery, and operational support, thereby securing our nation against global uncertainties.”
Defence Secretary, John Healey MP remarked:
“This investment in Britain’s defence will provide a sustained boost to British industry, employment, and national security.”
“Aligned with our upcoming defence industrial strategy, this agreement with Rolls-Royce, a landmark British success story, will nurture high-skilled UK jobs that train the many submariners who ensure our safety. We are demonstrating that defence can act as a catalyst for growth while also delivering better value for taxpayers.”
“National security is a cornerstone of our government’s reform plan, and this is a definitive illustration of our commitment to the UK’s nuclear deterrent, which is our ultimate safeguard in a more perilous world.”
The Unity Contract will create an additional 1,000 new positions within Rolls-Royce Submarines by the conclusion of the agreement. This growth will primarily be centered in Derby, along with recently announced satellite offices in Glasgow and Cardiff.
Addressing the increasing demands of the UK Royal Navy is of utmost importance to Rolls-Royce Submarines, facilitated through a highly skilled domestic workforce. This fosters resilience and proactive collaboration more broadly across the UK nuclear sector while nurturing home-grown talent. Investing in nuclear expertise is essential for the UK as the demand for this talent escalates in both defence and civil sectors.
The Unity contract also opens opportunities for the supply chain, the vast majority of which is based in the UK. The ability to forge long-term, strategic partnerships with extended lead times enhances capability, a longer-term perspective, and increased competition in the supply chain, ultimately delivering added benefits to the UK economy.
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency (SDA) commented:
“The signing of the Unity contract signifies a pivotal landmark in the partnership between the SDA and Rolls-Royce, enhancing resilience, collaboration, and capability.”
“By integrating existing commercial arrangements, it sends a clear message of our commitment to achieving greater effectiveness, efficiency, and responsiveness in addressing the requirements of the Defence Nuclear Enterprise and supporting the Royal Navy’s submarines both now and in the future.”
“It will also create a vital pipeline of home-grown nuclear expertise and give Rolls-Royce the long-term contractual security to strategize and cultivate its existing and future workforce.”
