BAE Systems, the largest defense company in the UK, has secured a substantial £3.95 billion contract to construct a new type of attack submarine. This move comes as part of the UK’s commitment to the Aukus security pact, which involves the United States, Australia, and the United Kingdom.
The Aukus agreement, revealed in March, aims to equip Australia with advanced nuclear-powered attack submarines by the early 2030s. This initiative is intended to counter China’s growing influence in the Indo-Pacific region.
BAE Systems has stated that the provided funding will support development efforts until 2028. This financial support will enable them to progress to the detailed design phase of the submarine program and begin procuring essential components.
Charles Woodburn, BAE’s CEO, emphasized the importance of this funding, stating that it demonstrates the government’s commitment to the UK’s submarine industry. It also allows the company to advance its design work, invest in crucial skills, and enhance infrastructure for this significant project.
Grant Shapps, the defense minister, declared at the Conservative party conference in Manchester that these advanced Aukus submarines, known as “hunter-killers,” will give the Royal Navy a strong edge beneath the waves. This advantage is crucial as the world becomes more uncertain and perilous.
These submarines will be based on a British design and represent the next generation of attack submarines, replacing the current Astute class. Both Australia and the UK will operate these submarines, referred to as SSN-Aukus. Production of these submarines is expected to commence in the latter part of this decade, with the first SSN-Aukus boat scheduled for delivery in the late 2030s.
The Aukus initiative is viewed by government officials as a vital component of their “levelling up” strategy, aiming to reduce economic disparities between regions. Cabinet minister Michael Gove mentioned Barrow-in-Furness, the town in Cumbria where BAE Systems constructs submarines for the Royal Navy, in a speech back in July. He pledged to transform it into a new economic powerhouse in the North of England.
Grant Shapps stated, “By supporting British businesses in developing these submarines, we’re making important, long-term decisions to strengthen our defense industry and boost our economy.”
This agreement ensures that BAE’s shipyard in Barrow will have steady work for decades to come. BAE has also indicated that the contract will facilitate substantial investments in infrastructure at the Barrow site, improvements in its supply chain, and the hiring of over 5,000 new employees.
This funding is instrumental in preserving the UK’s submarine shipbuilding capabilities, led by BAE and supported by Rolls-Royce, which manufactures the reactors that power the Navy’s submarines. Rolls-Royce, as a result of the Aukus deal, announced plans in June to double the size of its Raynesway facility in Derby.
Babcock International, the company responsible for maintaining and supporting all of the UK’s submarines, announced on Sunday that it has entered into a five-year contract with the Ministry of Defence (MoD). This contract is focused on contributing to the detailed design of the SSN-Aukus submarines.
David Lockwood, CEO of Babcock, expressed the significance of their expertise and extensive experience, stating that this contract award recognizes the importance of their contributions.
