Rolls-Royce, the engineering giant, has signed a contract with the Ministry of Defence. The deal will create 1,000 new jobs and protect 4,000 others.
The PS9bn deal will see the company produce nuclear submarine reactors to be used by the Royal Navy. According to the government’s statement, the arrangement will “generate greater efficiency, allow for risk and opportunity management and provide incentives to increase production without increasing costs.”
Rolls-Royce Submarines has signed a contract to manufacture and provide support services for nuclear submarine reactors that will be used by the UK fleet.
According to the MoD, the new contract streamlines the previous contracts, and encourages more efficient delivery. This will result in savings worth PS400m during the eight-year period of the contract.
The company will open a nuclear skills academies in Derby by 2022. This academy is designed to offer 200 apprenticeships per year for a minimum of ten years.
Rolls-Royce Submarines has doubled the size of their Derby site, Raynesway. They have also begun moving into warehouses specially constructed in Pride Park.
John Healey, the defence secretary, said that this investment will have a long-term impact on British jobs and business. It will also boost national security. Our government’s change plan is built on national security. This is a demonstration of our commitment towards the UK’s nuclear deterrent. It is our ultimate insurance in a dangerous world.
Chris Gardner, chief executive of Submarine Delivery Agency said that the deal “was a clear sign of our commitment to deliver more effectiveness, efficiency, and agility to meet needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines in the present and future.”
The main nuclear deterrent of the UK is a nuclear-armed Royal Navy submersible that is always on patrol.
