Rolls-Royce awarded £1bn contract for UK nuclear submarines

A £1.1bn contract to produce new reactor cores for the next generation of the UK's nuclear-armed submarines has been awarded to Rolls-Royce.

The MoD said the investment secures 300 jobs at Rolls-Royce and will also fund an 11-year refurbishment of its plant at Raynesway in Derby.

The deal is part of plans to replace the Vanguard fleet, which carries the Trident nuclear deterrent.

The defence secretary said it would ensure UK sovereign nuclear capability.

"Having balanced the MoD's books we can now invest in vital strategic capabilities to meet the present and future defence needs of the UK," Philip Hammond said.

"This contract will secure hundreds of highly skilled jobs for UK industry, while retaining our sovereign nuclear capability.

"The Raynesway site has played a key part in the production and maintenance of our nuclear deterrent for more than 50 years. This regeneration will make sure it continues to do so for many years to come."

Britain's nuclear weapons system is currently made up of four Royal Navy submarines, based at the Faslane naval base on the Clyde, which can deploy Trident ballistic missiles carrying nuclear warheads.

Announcing the latest investment, the Ministry of Defence said replacing the existing infrastructure at Rolls-Royce with state-of-the-art nuclear reactor core production facilities would cost about £500m.

A further £600m will be spent on producing new reactor cores for the Astute and Successor Class submarines.

The Ministry of Defence has already set aside £3bn to begin work on the new submarines to replace the four Vanguard class boats.