systems provider Rolls-Royce has signed a £1 billion contract with the UK''s
ministry of defence to maintain nuclear power plant systems on board the Royal
Navy submarines'' current and future fleets for the next 10 years.
has designed, manufactured and maintained nuclear propulsion systems for the Royal
Navy for more than 40 years. Its naval business provides products and services
to 70 navies and coastguards and powers 400 ships.
contract covers technical support, management of spares, the provision of plant
safety cases and product development capability, for the Royal Navy''s current
submarine fleet that comprises 13 Swiftsure, Trafalgar and Vanguard class along
with the new Astute class submarines.
and the British ministry of defence will form a joint team to draw up agreed service
levels, and the company will be paid for meeting those targets rather than through
individual contracts. Rolls-Royce will also receive additional incentive payments
for improvements which create savings for the ministry when the submarines are
company will share with the defence ministry any savings that result from improved
business efficiency and effectiveness.
Ludlam, Rolls-Royce President Submarines, added: "The long-term nature of
the agreement allows both sides to better plan and prioritise, sharing the benefits
of savings made."
Drayson, minister of state for defence equipment and support, said, "This
landmark partnering contract ensures the United Kingdom secures its ability to
manufacture and support this strategic equipment in the future. It will deliver
more cost-effective management of submarine maintenance and safeguard jobs and
essential skills in the UK."
a contract formally known as ''flotilla reactor plant support'' that does not include
power plant manufacture, Rolls-Royce is conducting a £137 million long-term
service and support contract for gas turbines which power 27 ships in service
with the Royal Navy, and French,
Belgian and Royal Netherlands navies, and is part of a team providing support
to four Royal Australian Navy amphibious and afloat support ships for seven years
with options for a further five.