Rolls-Royce Partners with UK MoD in Groundbreaking Agreement
Rolls-Royce has sealed the most substantial UK Ministry of Defence (MoD) agreement in its history. The Unity pact spans eight years and integrates all facets of research and technology, design, manufacturing, and operational support for the nuclear reactors that power the Royal Navy’s submarine fleet. This collaboration between Rolls-Royce Submarines Ltd and the UK MoD establishes a cohesive capability portfolio.
Unity will facilitate a sharpened focus on simplification and efficiency, yielding enhanced results for the UK Royal Navy. It signifies a major undertaking and investment by the UK government and industry, generating thousands of high-skill employment opportunities nationwide and a lasting commitment for the years to come. This is genuinely a national initiative.
Rolls-Royce designs, constructs, and maintains all nuclear reactors that power the Royal Navy’s submarine fleet. This eight-year Unity agreement is valued at around £9 billion and will ensure comprehensive support for the operating UK Royal Navy submarine fleet throughout the duration. Additionally, it entails ongoing assistance in the construction and commissioning of Dreadnought Class submarines and the initiation of the previously announced SSN-AUKUS agreements.
This agreement is the first of its nature granted by the UK MoD and is the culmination of extensive planning between Rolls-Royce and the UK MoD, potentially paving new pathways for collaboration between government and industry. It signifies the UK’s commitment to maintaining a persistent at-sea nuclear deterrent and Rolls-Royce’s unwavering dedication to the UK Royal Navy and the Defence Nuclear Enterprise.
With a long-lasting commitment across Rolls-Royce Submarine initiatives, Unity consolidates current and forthcoming projects into a singular portfolio. It aims to foster an even more collaborative working relationship between Rolls-Royce and the UK MoD.
Steve Carlier, President of Rolls-Royce Submarines remarked:
“We’re thrilled to announce the Unity contract, which reaffirms our dedication to the Royal Navy and the Defence Nuclear Enterprise. This long-standing contract enables us to invest in the essential skills, apparatus, and facilities required to safeguard UK interests both domestically and internationally.”
“The Unity contract allows our business to collaborate seamlessly with the Ministry of Defence, accommodating the evolving needs of the UK Royal Navy, further refining reactor plant design, delivery, and operational support, thereby assuring the ongoing security of our nation amidst global uncertainties.”
Defence Secretary, John Healey MP stated:
“This investment in Britain’s defence will provide a sustained boost to British industry, employment, and national security.”
“In line with our forthcoming defence industrial strategy, this agreement with Rolls Royce, a historic British success story, will nurture high-skilled UK jobs that prepare the numerous submariners who keep us all safe. We are demonstrating that defence can be an engine for growth while also providing 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 generate an additional 1,000 new positions within Rolls-Royce Submarines by the conclusion of the agreement. This influx will primarily be observed in Derby, along with recently announced satellite offices in Glasgow and Cardiff.
Addressing the increasing demands of the UK Royal Navy is of paramount 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 vital for the UK as the demand for this talent escalates in both defence and civil sectors.
The Unity contract also opens doors 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 fosters greater capability, a longer-term outlook, and heightened competition in the supply chain, thereby delivering enhanced benefits to the UK economy.
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency (SDA) commented:
“The signing of the Unity contract marks a pivotal milestone 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 dedication to achieving greater effectiveness, efficiency, and responsiveness in meeting the needs of the Defence Nuclear Enterprise and supporting the Royal Navy’s submarines both now and in the future.”
“It will also facilitate a vital pipeline of home-grown nuclear skills and afford Rolls-Royce the long-term contractual security to strategize and develop its existing and future workforce.”
