BAE Lands $3.2B in Nuclear-Power Submarine Contracts With UK Defense Ministry

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.

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