Rolls-Royce bags $1.7 bn reactor contract

London: Britain’s defence ministry has awarded a 1.1 billion pound ($1.7 billion) contract to Rolls-Royce to deliver reactor cores for the UK’s nuclear-powered submarine fleet.

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The ministry said on Monday that about 500 million pounds will be spent to update the Rolls-Royce reactor core manufacturing plant in Derby in central England.

The remainder of the contract is for two reactor cores. One will be for the seventh and last of the Astute class submarines, which do not carry nuclear arms. The other will be for the so-called Successor class, intended to replace Britain’s Vanguard submarines which carry nuclear-armed Trident missiles.

The first Successor-class submarine is to be delivered in 2028. Rolls-Royce shares were up 1 percent in morning trading in London.

AP