LONDON — Rolls-Royce has secured a 10-year, 800 million-pound ($1.3 billion) deal with the Ministry of Defence to deliver and maintain the U.K.’s nuclear submarine propulsion capability.
The deal bundles together a number of contracts reaching their expiry into a single agreement. The new arrangement includes research contracts, in-service support for the Astute, Vanguard and Trafalgar nuclear submarine fleets, and other requirements.
The MoD said in a statement that by consolidating costs into one agreement it hoped to save around 200 million pounds over the next decade as part of the Submarine Enterprise Performance Programme (SEPP).
The SEPP arrangement aims to cut at least 900 million pounds by restructuring the U.K. nuclear submarine industry.
Defence Equipment and Support Minister Philip Dunne said in a statement that the deal would provide Rolls-Royce with “long-term certainty and stability, which will help sustain 2,000 jobs, whilst also providing a better deal for the taxpayer and ensuring our future plans remain affordable.”
Last year, the MoD awarded Rolls-Royce a 1 billion pound contract to produce new reactor cores for the seventh and final Astute class submarine and the first of a new generation of pressurized water reactors planned for use on the Successor-class nuclear missile equipped deterrent boats.
That June 2012 contract also included an 11-year refurbishment of Rolls-Royce’s nuclear production plant at Raynesway, Derby.