BAE Systems, the largest defense company in Britain, has been awarded a contract for £3.95bn ($4.82bn) to construct a forthcoming fleet of submarines, in light of the progressing security agreement with the United States, United Kingdom, and Australia.
In March, the three nations disclosed specific information regarding the Aukus accord, commonly referred to as the agreement to furnish Australia with nuclear-powered attack submarines, anticipated to be completed by the latter part of the 2030s.
The objective of the agreement is to mitigate China’s aspirations in the Indo-Pacific area.
The Beijing government has expressed significant criticism towards the three nations in relation to the agreement.
BAE Systems Chief Executive Charles Woodburn expressed immense pride on the organization’s involvement in the execution of the highly significant submarine programme spanning three nations.
According to BAE, the allocated funding will be utilized for development activities until 2028, and it is anticipated that the production of the vessels would commence in the latter part of this decade.
The initial SSN-Aukus submarine is projected to be delivered around the latter part of the 2030s.
Both the United Kingdom and Australia have made the decision to deploy the SSN-Aukus submarines, which are derived on a British naval design.
“The Aukus submarine programme, which entails a substantial financial commitment, is anticipated to contribute to the acquisition of hunter-killer submarine capabilities that are essential for the United Kingdom to sustain its strategic superiority and safeguard its prominent position within a competitive global framework,” stated Grant Shapps, the UK’s defence minister, during the commencement of the Conservative party conference in Manchester.
According to BAE, the SSN-Aukus is projected to become the largest, most formidable, and most advanced attack submarine ever utilized by the Royal Navy. This vessel is intended to eventually supplant the Astute class, which BAE currently constructs at its facility located in Barrow-in-Furness, Cumbria.
The arrangement is expected to generate employment opportunities for a significant period of time at the shipyard located in Barrow-in-Furness, which now sustains a workforce exceeding 10,000 individuals.
According to the company’s statement, the agreement would additionally provide funding for substantial investment at the site, investment in the company’s supply chain, and the recruitment of over 5,000 employees.
According to the official website of BAE, the corporation has a workforce of 39,600 individuals in the United Kingdom, while its global employee count exceeds 93,000.
The Aukus acquisition is also providing a significant boost to other prominent defense companies in the United Kingdom.
In March, it was officially announced that Rolls-Royce Submarines had been selected as the designated supplier for the nuclear reactor plants that will serve as the primary power source for the SSN-Aukus warships.
In the month of June, Rolls-Royce announced its intention to expand the dimensions of its Raynesway facility in Derby, with the objective of nearly doubling its current size. This decision was made in response to the aforementioned deal. Babcock International, the company responsible for the maintenance and upkeep of the United Kingdom’s submarines, announced on Sunday that it had entered into a five-year agreement with the Ministry of Defence to collaborate on the SSN-Aukus design.
The Aukus security coalition, initially unveiled in September 2021, has consistently faced censure from the Chinese government.
Nevertheless, the three Western nations assert that the agreement is intended to bolster stability in the Indo-Pacific region.