The British government has signed a £9 billion contract with Rolls-Royce to modernize its fleet of nuclear submarines, the BBC reports.
UK Defense Secretary John Healey is set to announce the deal on Friday during a visit to Rolls-Royce’s plant in Derby, where nuclear reactors are produced. The eight-year contract, named “Unity,” aims to improve the efficiency of reactor design, production, and maintenance while enhancing their environmental safety.
The project will create over 1,000 new jobs in the UK and preserve 4,000 existing positions. Additionally, it will streamline previous contracts, increase productivity, and generate savings of £400 million.
The “Unity” program supports the maintenance of the UK’s existing submarine fleet, the construction of new Dreadnought-class submarines, and the initiation of contracts under the AUKUS defense alliance, which includes the UK, the US, and Australia.
In March 2023, it was announced that Rolls-Royce would supply reactors for a new generation of nuclear submarines as part of the AUKUS agreement. These submarines will be built in the UK and Australia, utilizing technology from all three countries.
The British government previously stated that NATO’s current defense spending level of 2% of GDP is no longer sufficient. The Labour Party, under Keir Starmer’s leadership, has launched a Strategic Defense Review to assess the armed forces’ readiness to address modern challenges.