Aukus brings another Rolls-Royce boost

Australia is allocating Aus$4.6 billion (€2.8 billion) from its Aukus fund to ensure that Rolls-Royce’s nuclear reactors for its submarines arrive on time.

Aukus, a trilateral partnership between Australia, the UK and the US which was agreed in 2021, was created to support each government’s security and defence interests and involves assisting Australia in acquiring nuclear-powered submarines.

These will be built in Adelaide by the British multinational aerospace company, BAE Systems.

The Aukus project, which is jointly funded by the Ministry of Defence, will help to boostemployment in Derby and, as well as increasing Rolls-Royce’s output, will also require building additional office space.

“The funding will enable the Rolls-Royce factory in Derby to operate at an increased rate of production,” the Australian government announced.

The Aukus fund investment is regarded as crucial to ensuring that nuclear reactors will be ready in time the needs of both Australia and the UK, although the former’s government has yet to announce exactly what the funding will cover over the next 10 years.

Rolls-Royce was able to provide more details, revealing in late March that it was already working on doubling the size of its existing Rolls-Royce Submarines site.

“Now jointly funded by the UK Ministry of Defence and Australia’s Defence Department, the expansion work announced last summer will create over 1,000 new jobs in Derby across a range of disciplines, including manufacturing and engineering,” the company’s website announced.

“It will also see new manufacturing and office facilities on recently acquired land surrounding the existing Raynesway site.”