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Rolls Royce plc - Nuclear Submarine Support

Rolls-Royce Plc : 25 July, 2007  (New Product)
The UK MoD has signed a partnering contract with Rolls-Royce worth up to £1 billion over 10 years for the provision and through-life support of pressurised water reactors for the Royal Navy's nuclear powered submarines over the next ten years.
The contract covers the reactors and equipment that translate the massive power of the nuclear fission plant into the high pressure steam that drives the submarine's turbines, providing electrical power to the boat's systems and powering its propulsion system.

The Nuclear Steam Raising Plant drives not only our current submarines but will also power the new Astute submarines. Rolls-Royce has been supplying Nuclear Steam Raising Plants to the Royal Navy for almost 50 years from their production site at Raynesway in Derby, and this new contract will help secure the future of staff working in this part of the business.

The new partnering contract consolidates previous arrangements into one all-embracing contract for the next ten years, with the company taking on responsibility for planning and managing the programme effectively.

Minister of State for Defence Equipment and Support, Lord Drayson, welcomed the new arrangements:

'This landmark 10-year contract will deliver more cost effective management of submarine maintenance and safeguard essential skills in the UK. This is a key deliverable under the Defence Industrial Strategy and we anticipate it will lead to savings of over 120 million throughout the term of the contract.'

'The contract sustains the UK's capability to support a Nuclear Steam Raising Plant and uses the principles of the MoD's Procurement Reform programme to develop a more effective relationship with one of our top ten major industrial partners.'

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