Rolls-Royce Submarines breaks ground on major Derby expansion to support AUKUS

Rolls-Royce Submarines is expanding its Raynesway facility in Derby, breaking ground on a new manufacturing complex to meet growing demand from both the UK Royal Navy and the Royal Australian Navy under the AUKUS security partnership. 

The project forms part of a long-term programme to double the size of the Raynesway site, where Rolls-Royce designs, builds and supports the nuclear reactors that power every Royal Navy submarine. Once complete, the expansion will also underpin the production of nuclear propulsion systems for Australia’s future SSN-AUKUS attack submarines. 

Construction has now begun on a new manufacturing facility following a ceremonial groundbreaking attended by UK Defence Minister Lord Coaker, Rolls-Royce Submarines President Abi Clayton and Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group. 

More than 100,000 square metres of new facilities

The expansion will add more than 100,000 square metres of manufacturing and office space to the Raynesway campus while creating 1,170 highly skilled jobs across engineering, manufacturing and other technical disciplines. 

Rolls-Royce says the additional capacity is essential to increasing production rates for both existing UK submarine programmes and future SSN-AUKUS boats.

“Breaking ground is a significant step forward in the critical growth of our business,” said Abi Clayton, President of Rolls-Royce Submarines. “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.”

Clayton added that the project would “unlock much-needed manufacturing capacity” and increase the company’s production “drumbeat” in support of submarine construction programmes. 

A key industrial investment for AUKUS

Rolls-Royce Submarines first announced plans for the Raynesway expansion in 2023 following the launch of the AUKUS partnership between Australia, the UK and the US.

Under Pillar I of AUKUS, Australia will acquire conventionally armed, nuclear-powered submarines based on the UK-developed SSN-AUKUS design. Rolls-Royce Submarines will manufacture the nuclear reactors for both British and Australian boats, making increased industrial capacity a critical element of the programme. 

Australia has committed billions of dollars to strengthening the UK’s submarine industrial base, including investments to expand Rolls-Royce’s Derby facilities as part of wider efforts to ensure sufficient manufacturing capacity for both nations’ submarine fleets. 

Supporting the UK’s nuclear deterrent

Raynesway is one of the UK’s most strategically important defence manufacturing sites. It designs and builds the pressurised water reactors used across the Royal Navy’s submarine fleet and supports the UK’s continuous at-sea nuclear deterrent.

The expanded site will support production for both the new Dreadnought-class ballistic missile submarines, which will replace the Vanguard class, and the SSN-AUKUS attack submarines that will eventually succeed the Astute class. 

During the visit, Lord Coaker also met Rolls-Royce nuclear welding apprentices, whose team recently secured the top four places in the East Midlands SkillWeld competition—marking the first time a single company has claimed all top positions. 

“Witnessing the manufacturing of the fifth SSSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth, and keeping the UK safe,” Lord Coaker said.

Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group, added that the nuclear enterprise investment confirmed in the DIP “reflects the UK’s unwavering commitment to maintaining and renewing our nuclear deterrent, a capability that has protected the UK and our allies for almost 60 years. Delivering this work is a National Endeavour and continues to drive growth, strengthen security and sustain tens of thousands of jobs across the UK.”