BAE awarded £4bn Aukus attack submarine contract

The submarines will be built at Barrow-in-Furness, Cumbria, and Rainsway, Derby. Photo: Andrew Lynnett/Royal Navy

BAE Systems was awarded a £3.95 billion contract to build the next generation of nuclear submarines as part of the Aukus security pact with Australia and the US.

Deal with The British defense giant was announced by Defense Secretary Grant Shapps and is in line with the three countries' plans outlined in March to supply Australia with attack submarines to counter China's ambitions in the Indo-Pacific region.

BAE Systems is the main beneficiary of the contract, but Rolls-Royce and Babcock will also be involved in the production and design of the submarines, which are planned for delivery by the end of the 2030s.

The defense giant said it would support thousands of jobs at its plants in Barrow-in-Furness and Rainsway, Derby.

The UK will also operate submarines, Mr Shapps told the Conservative Party conference on Sunday, adding that the deal «will facilitate the development of the most powerful attack submarines ever operated by the Royal Navy.»

He said: “These Aukus hunter submarines will enable the Royal Navy to maintain our strategic advantage at sea.”

Charles Woodburn, chief executive of BAE, said: “We are incredibly proud of our role.” in delivering this vital tri-nation submarine programme.

“This funding strengthens the Government's support for our UK submarine enterprise and allows us to improve design and invest in critical skills and infrastructure to support our long-term national security «.

Australia-UK-US Defense Pact

Babcock, led by chief executive David Lockwood, has been awarded a five-year contract for the detailed design of the submarines.

Mr Lockwood said: “The importance of applying our extensive knowledge and years of experience receives recognition through this contract to ensure the new class will provide the lifetime operational readiness required by the Royal Navy.»

There are hopes among ministers that the deal will boost the government's leveling up programme. , particularly as it would mean the creation of 5,000 additional jobs for BAE in Barrow, Cumbria.

The UK Ministry of Defense said: “Over the next decade Australia will work to build up its submarine industrial base and will build their submarines. in Australia, where Rolls-Royce supplies nuclear reactors for all UK and Australian submarines.»