BAE Systems has received contracts worth approximately $3.2 billion from the U.K. government to support development work on nuclear-powered submarines.
The company said Monday it will produce and deliver the seventh Astute-class submarine, HMS Agincourt, under a potential $2 billion contract.
BAE also received a potential $1.2 billion contract to continue development work on Dreadnought-class submarines, purchase materials and invest in new facilities over the next year.
The Dreadnought-class submarine program is designed to replace four Vanguard-class submarines and will be delivered by BAE in partnership with Rolls-Royce and the U.K. defense ministry through the Dreadnought Alliance.
Cliff Robson, submarines managing director at BAE, said the contracts would support approximately 8,700 employees at BAE’s submarines business and back the firm’s supply chain that works to deliver on the Royal Navy’s submarine programs.