Rolls-Royce Holdings PLC (LSE:RR.) has penned a £9 billion deal with the Ministry of Defence for nuclear submarine reactors.
Marking the largest ever between the two, the agreement is set to be unveiled on Friday during a visit of defence secretary John Healey to Rolls’ Derby nuclear reactor factory.
Support for the Royal Navy’s current fleet and work on new Dreadnought Class submarines were set to be covered under the eight-year deal.
Initial contracts around the UK, US and Australian Aukus alliance were also to be included, after the trio agreed plans to build submarines together in 2023.
Dubbed Unity, the agreement would streamline former contracts and boost efficiency, allowing savings of £400 million, according to the government.
Some 1,000 jobs were also set to be added under the deal, with a further 4,000 safeguarded.
“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,” Healy said.
Rolls-Royce Submarines president Steve Carlier added: “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.”