BAE Systems, the UK’s leading defence company, has landed a contract worth £3.95bn ($4.82bn) to manufacture the next generation of submarines, advancing the trilateral security agreement among the US, UK, and Australia, known as the Aukus pact.
The alliance, unveiled in March, has the objective of equipping Australia with nuclear-powered attack submarines by the latter part of the 2030s, with intentions to counter China’s increasing influence in the Indo-Pacific. This move has faced stiff opposition from Beijing.
Charles Woodburn, BAE Systems’ Chief Executive, expressed immense pride in the company’s pivotal role in this paramount tri-nation submarine initiative. The funds allocated will cover the development phase up to 2028, with the actual production of the submarines set to commence around the end of the decade.
Slated for delivery in the late 2030s, the first SSN-Aukus submarine will be employed by both the UK and Australia and will be rooted in a British blueprint. UK defence minister Grant Shapps underscored the significance of this investment in the Aukus programme at the onset of the Conservative party conference in Manchester. He highlighted its crucial role in equipping the UK with long-term submarine capabilities essential for upholding its strategic edge in a globally competitive environment.
BAE highlighted the magnitude and prowess of the SSN-Aukus, dubbing it as the most formidable and technologically superior attack submarine to be operated by the Royal Navy. The new generation will succeed the Astute class and will be constructed at BAE’s Barrow-in-Furness site in Cumbria. This contract guarantees extended work for the shipyard, securing jobs for its 10,000-strong workforce and promises substantial reinvestment in the facility, its supply chain, and the recruitment of over 5,000 additional workers.
The Aukus agreement has also brought good tidings for other key UK defence contractors. For instance, Rolls-Royce Submarines is set to provide the nuclear reactor plants powering the SSN-Aukus vessels. Babcock International, a key player in the upkeep and support of the UK’s submarines, has also announced a five-year agreement with the Ministry of Defence, focusing on the SSN-Aukus design.
While the Aukus alliance, first unveiled in September 2021, has garnered considerable criticism from China, the participating Western nations emphasize its purpose of reinforcing stability in the Indo-Pacific.
