Rolls-Royce wins GBP 360 million submarine support contract

Rolls-Royce has won a second service contract from the Ministry of Defence to ensure the safety and power performance of Royal Navy nuclear submarines, in a deal worth £360 million, it was announced today (December 10).

Monday, 10 December 2001

Under this contract, the company will continue to operate and maintain the Vulcan Naval Reactor Test Establishment site at Dounreay, Scotland, on behalf of the Ministry of Defence, to service and support Royal Navy programmes over the next 13 years. This facility tests the operation and performance of the nuclear power plants used to support the UK submarine flotilla.

On November 14, Rolls-Royce announced it had won a contract to provide a total powerplant support package, worth £100 million over the next three years. Future programmes envisaged for 2004-2011 are potentially worth a further £300 million.

Saul Lanyado, Rolls-Royce President - Marine said: "Customer support is an important part of Rolls-Royce strategy, representing 40 per cent of Group sales. The company has invested in enhancing its customer service capabilities and this contract is another example of the emphasis we place on continuing support to our customers.

"We have in place two long-term agreements which provide Rolls-Royce and the Ministry with a clear vision of how our partnership will develop to ensure the performance and availability of the submarine flotilla."

A key element of the Vulcan contract will be confirming the performance and safety of the long-life reactor core, part of the propulsion plant manufactured by Rolls-Royce. This type of core will power the new Astute class of submarines for their full platform life and will also be retrofitted to the Vanguard class.

Rolls-Royce has operated the Vulcan site since 1964. The company has designed, supplied and supported all the reactor systems and equipment that powers the Royal Navy's nuclear submarine fleet.