Britain and Australia have announced a multibillion-dollar partnership between BAE Systems and Australian company ASC Pty Ltd to build nuclear submarines for the AUKUS alliance that includes the U.S. British Defense Minister Grant Shapps said it shows Australia’s confidence in the British defense industry. File Photo by Hugo Philpott/UPI | License Photo
Britain’s BAE Systems and Australia’s ASC Pty Ltd agreed to a multibillion-dollar partnership announced Friday to build nuclear submarines. The deal includes $4.6 billion over 10 years from Australia to Britain’s Rolls-Royce nuclear reactor production facility.
Billions of dollars will also go to the United States to boost production there. Advertisement
BAE Systems is a British company and ASC Pty Ltd is an Australian state-owned company. The subs are being built by the AUKUS alliance of Britain, the United States and Australia.
AUKUS is a strategic trilateral defense alliance. The subs will be nuclear-powered, but conventionally armed.
British Defense Minister Grant Shapps, Australian Deputy Prime Minister Richard Marles and U.S. Ambassador to Australia Caroline Kennedy met in Australia to welcome the partnership deal after months of negotiations.
“In a more dangerous world, today’s announcement symbolizes the huge confidence our close partner Australia has in our world-leading defence industry, including companies such as BAE Systems and Rolls-Royce,” Shapps said in a statement.
In a joint statement the AUKUS allies said, “AUKUS partners welcomed the announcement of the selection of ASC Pty Ltd and BAE Systems to build Australia’s SSN-AUKUS submarines, and the selection of ASC as Australia’s nuclear-powered submarine sustainment partner.” Advertisement
The alliance added that these steps to grow Australia’s submarine construction and maintenance capacities are critical to the AUKUS partnership.
Last year U.S. President Joe Biden announced a major deal with Australia and Britain to build a fleet of nuclear-powered submarines to help balance aggressive Chinese naval forces in the Pacific.
BAE Systems CEO Charles Woodburn said in a statement: “Our selection as a partner in Australia, alongside ASC, recognizes our role as the UK’s long-term submarine design and build partner and as a key player in Australia’s maritime enterprise and wider defence landscape. We’re already making good progress on the design and development of the next generation submarine in the UK where we have more than 1,000 people working on the SSN-AUKUS program and major infrastructure investment underway.”
Rolls-Royce Submarines President, Steve Carlier said in a statement: “This commitment of funding to our existing expansion work shows the trust Australia places on our nuclear expertise and our ability to deliver. We look forward to working with the Australian Submarine Agency to support them in building their own fleet of nuclear-powered submarines.”
Australia agreed in March 2023 to make a significant investments in Britain’s submarine industrial base. Advertisement
The investments include Rolls-Royce, Sheffield Forgemasters and their supply chains.
Britain’s investment in the program will double the size of the Rolls-Royce Derby site, adding 1,170 highly skilled jobs.
Australian employer association Ai Group CEO Innes Wilcox said in a statement: “This decision confirms Adelaide as the center for construction of the SSN-AUKUS submarines and represents a significant boost to South Australia’s shipbuilding industry and economy. A strong sovereign industrial base is vital for the Australian Defense Force’s preparedness and mobilization.”
