Rolls-Royce welcomes Australian investment in Derby site

Rolls-Royce has welcomed an announcement by the Australian Government to invest in ongoing preparations in Derby for a major contract involving a new fleet of submarines.

Last year, it was confirmed that Rolls-Royce Submarines would provide all the nuclear reactor plants that will power new attack submarines as part of the tri-lateral agreement between Australia, the UK and US, known as ‘AUKUS’.

To meet the growth in demand from the Royal Navy, which includes AUKUS delivery commitments, work is already underway to double the size of Rolls-Royce’s Raynesway site.

The financial commitment from the Australian Department of Defence supplements the expansion funding already committed by the UK Ministry of Defence.

Steve Carlier, president of Rolls-Royce Submarines, said: “Last year we were proud to welcome the Hon Richard Marles MP, Australia’s Deputy Prime Minister and Minister for Defence, and UK Defence Secretary Grant Shapps, to our Raynesway site to showcase some of the world-class manufacturing and engineering capabilities we have developed over the last 60 years.

“This commitment of funding to our existing expansion work shows the trust Australia places on our nuclear expertise and our ability to deliver.

“We look forward to working with the Australian Submarine Agency to support them in building their own fleet of nuclear-powered submarines.”

The now jointly funded expansion work will create more than 1,000 new jobs in Derby across a range of disciplines, including manufacturing and engineering.

It will also see new manufacturing and office facilities being built on recently acquired land surrounding the existing Raynesway site.

Mr Shapps said: “In a more dangerous world, this announcement symbolises the huge confidence our close partner Australia has in our world-leading defence industry, including companies such as BAE Systems and Rolls-Royce.

“Through these collaborations, British industry will grow, and thousands of jobs created across the country, delivering security and prosperity to our two nations.”

Rolls-Royce Submarines currently employs more than 4,000 people and designs, manufactures and provides in-service support to the pressurised water reactors that power every boat in the Royal Navy’s submarine fleet.

To support preparation for AUKUS and to meet the additional commitments to the MoD, Rolls-Royce recently announced the opening of two satellite offices in Glasgow and Cardiff.

The locations were selected to help access the skilled talent pools in both regions, with more than 100 jobs being created in each city.

To further ensure a steady pipeline of future talent into the industry, Rolls-Royce opened a new Nuclear Skills Academy in Derby in 2022.

It will provide 200 apprenticeships each year for at least the next decade.