Rolls-Royce Doubles Derby Facility Capacity for Submarines

Rolls-Royce has commenced construction on an expanded reactor production facility in Derby, marking a significant infrastructure investment as the company prepares to meet increased demand from UK and Australian submarine programmes.

The aerospace and defence manufacturer is doubling the capacity of its Raynesway site in Derby, where it produces the nuclear reactors that power Royal Navy submarines.

The expansion comes as European countries and the UK increase defence spending, with UK defence expenditure projected to reach 2.7% of GDP by 2029 to 2030, according to data from the Financial Times.

This surge in defence spending and infrastructure expansion signals a critical window for procurement teams to assess supplier capacity and proactively mitigate bottleneck risks.

Scaling manufacturing capacity

The expansion responds to increased demand from the UK and Australian Royal Navies, requiring enhanced manufacturing output for current and future submarine programmes. The development will add more than 100,000 m² of new manufacturing and office facilities to the existing site.

Abi Clayton, President of Rolls-Royce Submarines, says: "Breaking ground is a significant step forward in the critical growth of our business. This expansion will more than double the size of our manufacturing facility, strengthening our capability and demonstrating our ongoing commitment to the Defence Nuclear Enterprise.

"Together with our trusted delivery partners, our commitment is to deliver this programme safely, efficiently and to the highest standards. This work will unlock much-needed manufacturing capacity on site, allowing us to enhance our delivery drumbeat to support the boat build programmes."

Supply chain implications

According to the Office for Nuclear Regulation (ONR), Rolls-Royce has been involved in the UK naval programme since its inception in the 1950s and serves as the design authority for the Royal Navy's naval nuclear plant.

The company's engineers design and substantiate the safety of the Nuclear Steam Raising Plants, including reactor cores, primary systems pipework and valves, major vessels and the electronic control systems.

The ONR says the company's current workload includes final deliveries for the remaining in-build Astute class boats, increased delivery of the new PWR3 reactor design into the Dreadnought class SSBN boats and initial work on reactor designs for the Astute replacement attack submarines.

Rolls-Royce also provides frontline support globally for reactor plant equipment from its Operations Centre in Derby. The company currently employs more than 5,500 people across its Submarines division.

Investment in nuclear infrastructure

The UK Government says in its Defence Investment Plan that it will build up to 12 next-generation SSN-AUKUS nuclear powered, conventionally armed attack submarines.

AUKUS is a trilateral defence and security partnership between Australia, the United Kingdom and the US. Australia will also build the submarines under the partnership, according to the plan.

The government says it is investing over £20bn (US$26.71bn) more in the Defence Nuclear Enterprise over the next four years compared to the previous four years to "modernise and sustain its nuclear deterrent".

UK Defence Minister Lord Coaker said at the groundbreaking: "The expansion of the Rolls-Royce site is a clear demonstration of the government's commitment to the UK's nuclear deterrent. Witnessing the manufacturing of the fifth SSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth and keeping the UK safe."

The expanded facility will support production of reactors for the future Australian SSN-AUKUS attack submarines.