Latest News | 27 January 2025

Rolls-Royce signs landmark £9bn contract with MoD

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Derby City Council
Rolls-Royce
University of Derby
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Rolls-Royce has signed the biggest UK Ministry of Defence contract in its history, worth £9 billion.

The contract – dubbed Unity – stretches over eight years and will result in hundreds of new jobs being created at Rolls-Royce Submarines, in Raynesway.

The deal brings together all elements of research and technology, design, manufacture and in-service support of the nuclear reactors that power the Royal Navy’s fleet of submarines.

Unity will enable improved focus on simplification and efficiency and better outcomes for the UK Royal Navy, says Rolls-Royce, and will create thousands of highly-skilled jobs across the country – with the bulk in Derby.

Councillor Nadine Peatfield, leader of Derby City Council, said: “We are absolutely delighted to welcome this landmark deal between Rolls-Royce and the Government.

“It represents the largest single investment ever made in our city and there are many families and communities who will benefit directly and indirectly as a result of the jobs retained and created.

“Derby City Council will continue to work very closely with Rolls-Royce to ensure smooth delivery of these important projects.”

John Forkin, managing director at Marketing Derby, said: “This is one of the UK’s biggest single investments and will prove transformational for Derby and the wider region.

“The city is already the longstanding global hub for Rolls-Royce’s civil aerospace division and the current growth of the company’s nuclear operations is a reflection of the talent and expertise of the Derby workforce.

“We do not take Rolls-Royce for granted and as a place we must ensure we broaden the impact and benefit of this investment over the next decade.”

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.”

Rolls-Royce’s Raynesway site designs, builds and maintains all of the nuclear reactors that power the Royal Navy’s fleet of submarines.

As well as providing full support of the in-service UK Royal Navy submarine fleet, it also includes continued support of the build and commission of Dreadnought Class submarines and the beginning of the previously announced SSN-AUKUS contracts.

The Unity contract will create an additional 1,000 new roles within Rolls-Royce Submarines by the end of the contract, which will predominantly be seen in Derby.

The contract is the first of its kind awarded by the UK MoD and is the culmination of years of planning between Rolls-Royce and UK MoD, potentially creating a new way of doing business between government and industry, according to the Derby engineering giant.

Mr Carlier said: “The Unity contract enables our business to work truly collaboratively with the Ministry of Defence, meeting the evolving needs of the UK 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.”

Defence Secretary John Healey 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.”

Rolls-Royce is already investing heavily in its Raynesway site to double its size.

The firm has also partnered with the University of Derby on the Nuclear Skills Academy, to create a pipeline of nuclear engineering talent.

Sir Chris Gardner KBE, chief executive of the Submarine Delivery Agency said: “The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability.

“Bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future.

“It will also enable a critical pipeline of home-grown nuclear skills and provides Rolls-Royce with the longer-term contractual security to plan and develop the existing and future workforce.”


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