UK invests over $8 billion to support SSN AUKUS build plan
The investment comes as among the first in a bid to reach an ambition of manufacturing one SSN every 18 months, which are set to be delivered from the end of the 2030s.
Concept art of a SSN AUKUS (BAE Systems)
BELFAST — The UK today announced a more than $8 billion investment for two major production sites set to build and deliver “up to” 12 nuclear-powered attack submarines (SSNs) under the trilateral AUKUS program.
In a statement, the government said that the new funding will “enable a transformation in the capacity, capability and productivity of the UK’s submarine industrial base” at UK-based facilities, including at BAE Systems in Barrow and Rolls-Royce Submarines in Derby — “to deliver the increase in the submarine production rate announced in the Strategic Defence Review [SDR].”
The UK SSN AUKUS fleet is planned to be built out of BAE Systems Barrow shipyard. Rolls Royce manufactures nuclear reactor plants at the Raynesway base, which are due to power the next generation subsurface vessels.
“Today we are building on our previous announcements, taking the steps necessary to realise our vision and transform Britain’s submarine industry,” Defence Secretary John Healey said in a statement. “These investments, and the continued dedication and skill of the men and women that help build and operate our submarines, will ensure we are able to meet the threats we face and keep us safe at home and strong abroad.”
As Breaking Defense previously reported, the commitment to build as many as a dozen of the future submarines to replace seven Astute-class boats was perhaps the most surprising part of the recently released SDR, which at the time did not explain the plan for funding such a fleet.
Analysts also said after SDR publication that “significant” investment in local shipbuilding would be necessary if the 12 vessel effort was to prove successful, but even then, one expert warned that potential obstacles tied to shipyard expansion, and financial risk for BAE Systems could conspire to ruin the big ticket procurement altogether.
The UK is pushed forward with the latest multibillion AUKUS industrial base investment in a bid to reach an ambition of manufacturing one SSN every 18 months, which are set to be delivered from the end of the 2030s.
Although British defense officials have not said how much each submarine will cost, production of the full fleet could run upward of $40 billion, according to Nick Childs, senior fellow for naval forces and maritime security at the International Institute for Strategic Studies.
A green light for production is likely to go ahead in 2028, following the end of five year Detailed Design and Long Leads (D2L2) AUKUS contracts, worth $4.9 billion, currently held by BAE Systems, Rolls Royce and Babcock.
In a related development, the UK also said it is committing to a “multi-decade, multi-billion redevelopment of HMNB [His Majesty’s Naval Base] Clyde, [Scotland] with an initial £250 million [$337 million] of funding over 3 years.”
The naval base is the home port of Royal Navy submarines.
