The British government has granted BAE Systems a £4 billion ($4.9 billion) contract as part of the AUKUS program, in collaboration with Australia and the United States, to construct attack submarines, according to a joint statement by Defense Minister Grant Shapps and the company on Sunday.
BAE Systems announced that the Ministry of Defense had allocated £3.95 billion in funding, covering development activities through 2028, enabling the commencement of detailed submarine design work.
Speaking at the Conservative Party’s annual conference in Manchester, Shapps underscored the significance of their sea-based nuclear deterrent, stating, “Our ultimate national insurance is, of course, our at-sea nuclear deterrent.”
Shapps further revealed, “Today, I can announce we have signed contracts with leading British enterprises to advance and develop the most formidable attack submarines ever to serve in the British Navy.”
In March, the United States, Australia, and Britain unveiled plans for the AUKUS initiative, aimed at supplying Australia with nuclear-powered attack submarines from the early 2030s, as a strategic response to China’s ambitions in the Indo-Pacific.
Shapps emphasized the substantial nature of this investment in the AUKUS submarine program, emphasizing its role in delivering the long-term hunter-killer submarine capabilities crucial for the UK.
Manufacturing of these submarines is scheduled to commence toward the end of this decade, with the first SSN-AUKUS submarine expected to be delivered in the late 2030s, as confirmed by BAE Systems.
This investment will also facilitate substantial infrastructure enhancements at BAE Systems’ facility in Barrow-in-Furness, support supply chain development, and lead to the recruitment of over 5,000 individuals.
Charles Woodburn, CEO of BAE Systems, expressed that this funding reinforces the government’s commitment to the UK’s submarine enterprise, facilitating design maturation and investments in critical skills and infrastructure to bolster long-term national security.
By the end of this year, the UK’s submarine programs are projected to employ 12,500 individuals, including nearly 900 apprentices and graduates.
