Rolls-Royce Signs Record Contract With MoD to Power Nuclear Subs

Rolls-Royce has signed the biggest Ministry of Defence (MoD) contract in its history. The Unity contract will span eight years and will be focused on supporting the nuclear reactors that power the Royal Navy’s fleet of submarines. 

The project will bring together all elements of research and technology, design, manufacture and in-service support of the nuclear reactors and is worth approximately £9 billion to Rolls-Royce. The Unity contract also covers ongoing support of the build and commission of Dreadnought Class submarines and the beginning of the SSN-AUKUS contracts. 

The contract is in fact the first of its kind to be awarded by the MoD and potentially represents a new way of doing business between government and industry. Why is it the ‘first of its kind’? Precisely because the Unity contract is long-term - over eight years - and combines both current and upcoming work into a single portfolio.

Commenting on the Unity contract, 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 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”.

It is expected that the Unity contract will create 1,000 new jobs within Rolls-Royce Submarines by the end of the contract. These jobs are likely to be predominantly located in Derby, although a number will also be created in satellite offices in Cardiff and Glasgow. 

The Defence Secretary, John Healey MP, 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”.

The Unity contract will also bring opportunities across its broader supply chain - the majority of which is located in the UK. 

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