My right honourable friend the Minister of State for the Armed Forces (Bob Ainsworth) has made the following Written Ministerial Statement:
I am pleased to announce that a 10-year partnering contract worth up to £1 billion has been signed with Rolls-Royce for the in-service support of nuclear steam raising plants, which power the Royal Navy’s submarines. This contract is a key deliverable under the defence industrial strategy published in December 2005.
This landmark 10-year contract marks a significant departure from former practices and will transform Rolls-Royce’s relationship with the department in this sector. It will sustain the UK capability in the long-term, enable the risks and rewards to be managed jointly and is a further example of partnering in action. Rolls-Royce and MoD will work together as a single, high-performing team to improve performance and drive down costs. Savings of over £120 million are anticipated over the term of the contract.
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 its production site at Raynesway in Derby and this new contract will help to secure the future of staff working in this part of the business.
The contract sustains the UK’s capability to support nuclear steam raising plants, as stated in the defence industrial strategy, and uses the principles of the MoD’s procurement reform programme to develop more effective relationships with one of our top 10 major industrial partners.
Today marks a significant achievement in securing the UK’s capability to support submarines in the future.