Rolls-Royce Breaks Ground on Submarine Facility in Derby

Rolls-Royce Submarines has officially ‘broken ground’ on an expanded facility in Derby, UK, and started foundational work on its new manufacturing facility.

The multinational aerospace and defence company plans to double the size of its Raynesway site in Derby, where it designs and builds the nuclear reactors that power all UK Royal Navy submarines. 

European countries and the UK are currently ramping up defence spending. UK defence spending is now projected to reach 2.7% of GDP by 2029 to 2030, according to data from the Financial Times.

Rolls-Royce’s submarine expansion

Rolls-Royce says its expansion activity will help meet the increased demand from the UK and Australian Royal Navies to boost manufacturing output for current and future submarine programmes.

The expansion to its site will see over 100,000m2 of new manufacturing and office facilities being built and create 1,170 skilled roles across a range of disciplines, including manufacturing and engineering.

Abi Clayton, President of Rolls-Royce Submarines, says: “Breaking ground is a significant step forward in the critical growth of our business. This expansion will more than double the size of our manufacturing facility, strengthening our capability and demonstrating our ongoing commitment to the Defence Nuclear Enterprise.

“Together with our trusted delivery partners, our commitment is to deliver this programme safely, efficiently and to the highest standards. This work will unlock much-needed manufacturing capacity on site, allowing us to enhance our delivery drumbeat to support the boat build programmes.”

Production at Raynesway

According to the Office for Nuclear Regulation (ONR), Rolls-Royce has been involved in the UK naval programme since its inception in the 1950s and is the design authority for the Royal Navy's naval nuclear plant. 

Rolls-Royce’s engineers design and substantiate the safety of the Nuclear Steam Raising Plants including reactor cores, primary systems pipework and valves, major vessels and the electronic control systems. 

The ONR says the company's current work includes final deliveries for the remaining in-build Astute class boats, increased delivery of the new PWR3 reactor design into the Dreadnought class SSBN boats and initial work on reactor designs for the Astute replacement attack submarines.

It also provides frontline support across the world for reactor plant equipment from its Operations Centre in Derby. 

Rolls-Royce Submarines currently employs more than 5,500 people.

In a press release covering the groundbreaking in Derby, Rolls-Royce says it will provide reactors for the future Australian SSN-AUKUS attack submarines. 

The UK’s nuclear submarine program

The UK Government says in its Defence Investment Plan 2026, published 30 June 2026,  that it will build up to 12 next-generation SSN-AUKUS nuclear powered, conventionally armed attack submarines. 

AUKUS is a trilateral defence and security partnership between Australia, the United Kingdom and the US. Australia will also build the submarines, according to the plan. 

The government says it is investing over £20bn (US$26.71bn) more in the Defence Nuclear Enterprise over the next four years (than the previous four years) to "modernise and sustain its nuclear deterrent".

Speaking at Rolls-Royce's groundbreaking, UK Defence Minister, Lord Coaker, said: "The expansion of the Rolls-Royce site is a clear demonstration of the government’s commitment to the UK’s nuclear deterrent.

“Witnessing the manufacturing of the fifth SSSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth and keeping the UK safe."