Britain signs 4 billion pound deal to build attack submarines

Britain on Sunday announced a 4 billion pound ($4.9 billion) deal to build attack submarines.

The British government has awarded BAE Systems a 4 billion pound ($4.9 billion) contract as part of the AUKUS programme with Australia and the United States to build attack submarines, Shapps and the company said on Sunday.

In a statement, BAE Systems said that the defence ministry had awarded it the 3.95 billion pound funding to cover development work to 2028, allowing it to start detailed design work on the submarines.

“Our ultimate national insurance is of course our at at-sea nuclear deterrent,” British defence minister Grant Shapps told the governing Conservative Party's annual conference in Manchester.

“Today, I can announce we have signed contracts with leading British businesses to drive forward and develop the most powerful attack submarines ever operated by the British Navy.”

In March, the United States, Australia and Britain unveiled details of the AUKUS plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific.

“This multi-billion-pound investment in the AUKUS submarine programme will help deliver the long term hunter-killer submarine capabilities the UK needs,” Shapps said in the statement.

Manufacturing of the submarines would start towards the end of the decade with the first SSN-AUKUS boat due to be delivered in the late 2030s, BAE Systems said.

Having started design work in 2021, the sum will cover development work to 2028.

The deal will also fund significant infrastructure investment at BAE Systems’ site in Barrow-in-Furness, investment in its supply chain and recruitment of more than 5,000 people.

“This funding reinforces the government’s support to our UK submarine enterprise and allows us to mature the design, and invest in critical skills and infrastructure to support our long-term national security,” BAE Systems chief executive Charles Woodburn said.

The UK’s submarine programs will employ 12,500 people, including around 900 apprentices and graduates, by the end of this year.

(With inputs from agencies)