MoD in £328million BAE submarine deal
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BAE Systems has been awarded a £328million contract by the UK Ministry of Defence (MoD) for the design of the Royal Navy's next generation of submarines.
Contracts have been also been awarded to Babcock and Rolls-Royce, a move which is expected to sustain or create nearly 2,000 jobs at sites across the UK. Engineers at thall three companies will work with the MoD on the design of the new submarines, which will use a new nuclear propulsion system. "The signing of this contract is a key step forward in our business strategy to deliver a seven boat Astute programme followed by the replacement class for the Vanguard submarines," said BAE's managing director, John Hudson. "Not only does it help sustain the jobs of over 1,000 skilled employees currently working on the programme, it also provides the opportunity to grow our workforce by a further 280 in 2012." Defence Secretary Philip Hammond added: "This Government is committed to maintaining a continuous submarine based nuclear deterrent. The contracts announced today with BAE Systems, Babcock and Rolls-Royce symbolise an important step towards renewing our nation's nuclear deterrent into the 2060s. "We have a world class submarine building industry in this country and this programme will help to sustain or create more than 1,900 jobs across the UK."