UK’s BAE Systems Lands £3.95bn Contract for Next-Generation Submarines under Tri-Nation Aukus Pact


BAE Systems, Britain’s leading defence firm, has secured a £3.95bn ($4.82bn) contract to construct a state-of-the-art generation of submarines in alignment with the progressive security pact struck between the UK, the US, and Australia. The tri-nation Aukus agreement, announced in March, propels Australia towards wielding nuclear-powered attack submarines by the closing decade of the 2030s.

While the accord principally serves to artfully counterbalance China’s burgeoning ambitions in the Indo-Pacific sphere, it has incited significant criticism from Beijing. Despite international flack, the partnership forges ahead, dedicated to the crucial cause of international security and balance.

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Charles Woodburn, Chief Executive of BAE Systems, expressed his company’s pride in participating in such a “vitally important, tri-nation submarine programme”. The received funds will finance development initiatives through 2028, with the actual manufacturing of the vessels projected to commence towards this decade’s end.

Sheduled for delivery in the late 2030s, the first SSN-Aukus submarine stands on a blueprint of British design, to be employed by both the UK and Australia. According to UK defence minister Grant Shapps, the substantial investment in the Aukus submarine programme will “help deliver the long term hunter-killer submarine capabilities the UK needs to maintain our strategic advantage and secure our leading place in a contested global order”.

BAE Systems touts that the SSN-Aukus will be the largest, most robust and technologically supreme attack submarine ever wielded by the Royal Navy, succeeding the Astute class currently in operation. The agreement guarantees prolonged employment at the Barrow-in-Furness shipyard that already engages over 10,000 personnel. It also ensures substantial investment at the site, an enriched supply chain, and the recruitment of over 5,000 additional workers.

Notably, the prospering Aukus arrangement breathes invigoration into other major UK defence contractors as well. Rolls-Royce Submarines are confirmed to deliver the nuclear reactor plants that will power the SSN-Aukus vessels. Consequently, Rolls-Royce announced plans to nearly double the expanse of its Raynesway facility in Derby. Moreover, Babcock International, the entity maintaining and supporting UK’s submarines, reported a five-year contract with the Ministry of Defence to participate in the SSN-Aukus design.

The September 2021-born Aukus pact, while persistently eliciting disparagement from China, has remained resolute. The Western trio underscores that the deal is vested in fortifying stability in the Indo-Pacific region, leaving no room for deterrence.