Nuclear sub contract for Rolls-Royce

The Ministry of Defence has placed a £1billion, ten-year contract with Rolls-Royce to maintain the nuclear power plants of four classes of submarines, helping to safeguard jobs at the company’s site at Raynesway, Derby.

The contract covers 13 submarines in the Swiftsure, Trafalgar and Vanguard classes, and will also cover the new Astute submarines when they enter service. The contract is in a new form, with Rolls-Royce and the MoD forming a joint team to agree service levels, and the company being paid for meeting these targets. The MoD will also make incentive payments for improvements which will save money while the submarines are in service.

The contract will help both company and government, said Steve Ludlam, president of Rolls-Royce’s submarines division. ‘The long-term nature of the agreement allows both sides to better plan and prioritise, sharing the benefits of savings made.’

Rolls-Royce employs 1400 people at Raynesway.

Meanwhile, Rolls-Royce Civil Aviation, also based in Derby, secured orders worth £7.5billion at the Paris Air Show, the company said in its annual results announcement. The biggest single order, worth £2.8billion, came from Qatar Airways. Overall, the division’s order book grew from £20billion to £28.1billion, with profits up from £243million to £261million.