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Rolls-Royce hits key milestone in major site expansion to support UK and Australia defence commitments

03 July 2026

Rolls-Royce Submarines has officially ‘broken ground’ and started foundational work on its new manufacturing facility, as part of plans to double the size of its entire Raynesway site in Derby.

Illustration of proposed Raynesway site expansion with manufacturing facility highlighted.

Rolls-Royce Submarines has officially ‘broken ground’ and started foundational work on its new manufacturing facility, as part of plans to double the size of its entire Raynesway site in Derby.

This wider expansion activity will help meet the increased demand from the UK and Australian Royal Navies to boost manufacturing output for current and future submarine programmes. It will see over 100,000m2 of new manufacturing and office facilities being built and create 1,170 skilled roles across a range of disciplines, including manufacturing and engineering.

The ceremonial event saw the Minister of State for Defence Lord Coaker, Rolls-Royce Submarines President Abi Clayton, and Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group, dig the first ground together. A joint action which not only reflects the strength of this partnership but also the significance of the entire expansion programme.

Breaking ground at the Rolls-Royce Raynesway site expansion (l-r Abi Clayton, Lord Coaker and Commodore Alistair Moody)

Lord Coaker meets with Rolls-Royce welding apprentices

While on site, Lord Coaker also met with Rolls-Royce nuclear welding apprentices who recently secured first, second, third and fourth place in the SkillWeld 26 East Midlands heats - the first time that all top-three places have been won by the same company.

SkillWeld is a national competition designed to showcase and benchmark the talents of trainee and apprentice welders. It highlights the exceptional skill required to succeed as a nuclear welder and follows on from welding apprentice Jack Billingham being selected to represent Great Britain at the WorldSkills event in Japan.    

In June 2023, it was announced that Rolls-Royce planned to double the size of its Submarines site, where it designs and builds the nuclear reactors that power all Royal Navy submarines and helps maintain the UK’s continuous at sea nuclear deterrent. As part of the AUKUS partnership between Australia, the UK and US, the company will also provide reactors for the future Australian SSN-AUKUS attack submarines.

Abi Clayton, President – Rolls-Royce Submarines, said:

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Breaking ground is a significant step forward in the critical growth of our business. This expansion will more than double the size of our manufacturing facility, strengthening our capability and demonstrating our ongoing commitment to the Defence Nuclear Enterprise.

“Together with our trusted delivery partners, our commitment is to deliver this programme safely, efficiently and to the highest standards. This work will unlock much-needed manufacturing capacity on site, allowing us to enhance our delivery drumbeat to support the boat build programmes.”

Defence Minister Lord Coaker said:

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The expansion of the Rolls-Royce site is a clear demonstration of the government’s commitment to the UK’s nuclear deterrent.

“Witnessing the manufacturing of the fifth SSSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth, and keeping the UK safe."

Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group, said:

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The ongoing expansion work at Raynesway demonstrates the shared commitment of the UK and Australian governments to meet the ambitious pace of our submarine build programmes. Together, we are building the foundations for delivery to defend our nations for decades to come.

"The significant nuclear enterprise investment confirmed in the DIP reflects the UK's unwavering commitment to maintaining and renewing our nuclear deterrent, a capability that has protected the UK and our allies for almost 60 years. Delivering this work is a National Endeavour and continues to drive growth, strengthen security and sustain tens-of-thousands of jobs across the UK."

Rolls-Royce Submarines currently employs more than 5,500 people and designs, manufactures and provides in-service support to the pressurised water reactors that power every boat in the Royal Navy’s submarine fleet.

Rolls-Royce is currently supporting the existing Astute and Dreadnought boat build programmes through the delivery of reactor plant and associated components. This coordinated effort to sustain the nuclear deterrent is delivered by the UK MOD’s Defence Nuclear Enterprise as part of a truly national endeavour.

It also provides frontline support across the world for reactor plant equipment from its Operations Centre in Derby and supports the submarines when in the Barrow-in-Furness shipyard and the naval bases at Devonport and Faslane. In addition, there are technical specialists working in Glasgow, Cardiff, and Thurso.

About Rolls-Royce Holdings plc
  1. Rolls-Royce is a force for progress; powering, protecting and connecting people everywhere. Our products and service packages help our customers meet the growing need for power across multiple industries; enable governments to equip their armed forces with the power required to protect their citizens; and connect people, societies, cultures and economies together.
  2. Rolls-Royce has a local presence in 47 countries and customers in over a hundred more, including airlines and aircraft leasing companies, armed forces and navies, and marine and industrial customers.
  3. Through our multi-year transformation programme, we are building a high-performing, competitive, resilient and growing Rolls-Royce. We are building the financial capacity and agility to allow us to successfully develop and deliver the products that will support our customers through the energy transition.
  4. Annual underlying revenue was £20.1 billion in 2025, and underlying operating profit was £3.46 billion.
  5. Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).
  6. For over 65 years Rolls-Royce Submarines has designed, supplied and supported the nuclear propulsion plant that provides power for all of the UK Royal Navy's nuclear submarines. They are responsible for delivering the Nuclear Steam Raising Plants, plus parts of the secondary propulsion systems to the UK Ministry of Defence, including managing these assets across their full lifecycle.

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