BAE Systems wins multibillionpound deal to build Aukus subs
BAE SYSTEMS has won a multibillion-pound contract to build Australia’s next-generation nuclear-powered submarines in a major boost for British industry and jobs.
As part of the Aukus defence pact with the UK and the US, the Australian government has chosen BAE alongside domestic defence company ASC to deliver the vessels in the early 2040s.
The Ssn-aukus subs will be used by both the Royal Navy and Royal Australian Navy and will be the “largest, most powerful and advanced” attack submarines Britain has ever deployed.
They will be designed by BAE and feature British technology, such as reactors developed by Rolls-royce.
Grant Shapps, the Defence Secretary, who is currently visiting Australia, said the deal would create “security and prosperity to our two nations”.
“In a more dangerous world, yesterday’s announcement symbolises the huge confidence our close partner Australia has in our world-leading defence industry, including companies such as BAE Systems and Rolls-royce,” he said.
Charles Woodburn, BAE’S chief executive, said the deal cemented his company “as a key player in Australia’s maritime enterprise and wider defence landscape”.
He said: “We look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine building capability for Australia.”
Under yesterday’s agreement, Australia also announced it will invest £2.4bn in the UK’S submarine industrial base, including in BAE’S design work and Rolls-royce’s capacity to produce reactors at its nuclear facilities in Derby.
The move is expected to create 1,170 jobs at Rolls and is aimed at addressing concerns that Britain will struggle to meet the ambitious timelines set out under the Aukus deal.
Speaking to Australian broadcasters, Lord Cameron, the Foreign Secretary, insisted the UK was up to the task. “We are absolutely committed to doing it.”
Around 1,000 BAE staff are already working on the Ssn-aukus programme in Barrow-on-furness, Cumbria, where it is hoped the first UK subs will be completed in the late 2030s.
At present, BAE is finishing the UK’S current generation of Astute-class submarines there and will deliver the Dreadnought-class of nuclear-armed submarines in the 2030s as well.
A joint venture between BAE and ASC is expected to build Australia’s subs at the Osborne Naval Shipyard, near Adelaide. BAE is already building six anti-submarine frigates for Australia, which is expected to gradually replace its existing fleet of dieselpowered Collins-class subs through the Aukus deal.
Nuclear-powered subs are seen as essential to countering Chinese aggression in the Pacific, due to their ability to operate more quietly and stay underwater for longer.