Michelle ThompsonThe United Kingdom’s largest defense company, BAE Systems, has been awarded a contract worth £3.95 billion ($4.82 billion) to construct a next-generation submarine, a development that coincides with the advancement of the security agreement involving the United States, the United Kingdom, and Australia.
In March, these three nations unveiled the Aukus pact, outlining plans to supply Australia with nuclear-powered attack submarines by the late 2030s. This agreement is designed to counter China’s aspirations in the Indo-Pacific area, but it has faced strong criticism from Beijing.
“We’re immensely proud of our contribution to this crucial tri-nation submarine initiative,” remarked Charles Woodburn, the Chief Executive of BAE Systems.
BAE Systems clarified that the allocated funds will cover development activities until 2028, with the actual production of the submarines expected to commence towards the conclusion of this decade.
Partners reveal additional information about the nuclear submarine agreement.
The first SSN-Aukus submarine is on track for delivery in the late 2030s. Both the United Kingdom and Australia will utilize these SSN-Aukus submarines, which are based on a British design.
“This multi-billion-pound investment in the Aukus submarine program will help provide the UK with the long-term hunter-killer submarine capabilities necessary to maintain our strategic advantage and secure our prominent position in a contested global landscape,” stated UK Defense Minister Grant Shapps during the Conservative Party conference in Manchester.
BAE Systems announced that the SSN-Aukus will be the largest, most powerful, and advanced attack submarine ever operated by the Royal Navy and will eventually replace the Astute class submarines, which are constructed at its facility in Barrow-in-Furness, Cumbria.
This agreement will ensure decades of employment at the Barrow-in-Furness shipyard, where more than 10,000 people are currently employed. The deal will also result in substantial investments at the site, bolstering the supply chain, and hiring over 5,000 additional workers.
BAE Systems has a workforce of 39,600 people in the UK and a global workforce exceeding 93,000, according to the company’s website.
Other major UK defense contractors are also benefiting from the Aukus deal. In March, it was confirmed that Rolls-Royce Submarines would supply all the nuclear reactor plants for the SSN-Aukus vessels. In June, Rolls-Royce announced plans to nearly double the size of its Raynesway facility in Derby as a result of this agreement. On Sunday, Babcock International, responsible for maintaining and supporting the UK’s submarines, announced a five-year deal with the Ministry of Defence to work on the SSN-Aukus design.
The Aukus security alliance, initially announced in September 2021, has faced criticism from China. Nevertheless, the three Western nations contend that the deal is aimed at bolstering stability in the Indo-Pacific region.
