BAE Systems, Britain’s largest defence contractor, won a £3,95bn contract for the construction of a new generation attack submarines, as the UK continues to move forward with the trilateral Aukus Security Pact.
In March, the US, Australia and Britain unveiled the Aukus Plan to provide Australia with nuclear-powered attack subs by the early 2030s. This is to counter China’s Indo-Pacific ambitions.
BAE stated that the funding will cover development work up until 2028. This will allow it to begin the detailed design phase and to purchase long-lead products.
Charles Woodburn said that the funding “reinforces government support for our UK submarine enterprise, allows us to maturity the design and invest in critical skill and infrastructure.”
The defence minister Grant Shapps said at the beginning of the Conservative Party conference in Manchester, on Sunday, “These hunter/killer Aukus subs will empower us to maintain our strategic edge under the sea. This will enable us to compete anywhere in the globe as our world becomes unpredictable and dangerous.”
The subs will be built on the British design of the next generation attack boats, which will replace the Astute class. The SSN-Aukus will be operated by both Australia and the UK. The boats will be manufactured towards the end the decade. The first SSN-Aukus is expected to arrive in late 2030s.
Aukus, according to ministers, is a crucial part of the government’s agenda for “leveling up” regional economic differences. Michael Gove, Cabinet Minister, mentioned Barrow-in-Furness in his July speech, where BAE Systems manufactures submarines for Royal Navy. He promised to turn it into a “powerhouse” of the North.
Shapps said, “By supporting British companies to develop these technologies, we are taking the long-term decisions we need to grow our defence industry and our economy.”
The agreement will ensure decades of work in BAE’s Barrow yard. BAE announced on Sunday that it would use the contract to fund infrastructure investments at Barrow as well as investment in the supply chain, and recruit more than 5,000 employees.
The money will be used to help preserve the submarine shipbuilding industry in the UK, led by BAE. Rolls-Royce builds the reactors for the Navy’s subs. Rolls-Royce announced in June that it would double the size at its Raynesway facility in Derby due to the Aukus agreement.
Babcock International (which maintains and supports the UK’s submersibles) announced on Sunday it had signed a contract for five years with the MoD, to provide input in the design of SSN Aukus.
Babcock CEO David Lockwood said that “this contract award recognises the importance of applying our extensive expertise and longstanding experience”.