A MAMMOTH maintenance contract for nuclear submarines has been handed to an engineering giant.
Rolls-Royce has been awarded the £800m contract by the Ministry of Defence to deliver and maintain the nuclear propulsion capability for UK submarines.
The contract is set to last 10 years and secure in the region of 2,000 jobs nationwide and is set to include propulsion capabilities for Astute and Successor-class submarines built in Barrow.
The contract is part of the Submarine enterprise performance programme, and it is believed it will help the company transform operations in order to carry out work at best value for the taxpayer – with around £200m in savings across the next decade.
This contract goes a long way towards meeting the government’s commitment to SEPP, as announced in the 2010 strategic defence and security review, to make at least £900m of savings by restructuring the UK’s nuclear submarine industry.
Productive negotiations between MOD and Rolls-Royce mean the savings secured by this contract will not lead to any reduction in the required level of output for the submarine programme.
Philip Dunne, minister for defence equipment, support and technology, said: “This contract provides the company with long-term certainty and stability, which will help sustain around 2,000 jobs, whilst also providing a better deal for the taxpayer and ensuring our future plans remain affordable.
“By making sure the submarine industry is aligned to the needs of the MOD, we are able to press on with the Astute and Successor submarine programmes safe in the knowledge that the value of our significant investment is being maximised.”
Mr Dunne added: “Rolls-Royce’s work in the production of submarine propulsion systems is an important national strategic capability.
“It is necessary in order to meet the present and future defence and security needs of the UK and this contract ensures the MOD can continue to benefit from this unique capability on the best possible business terms.”