The company, under the contract, will upgrade its current submarine reactor core manufacturing facility in Derby with latest technology and manufacturing techniques to deliver increased efficiencies committed by the MoD and industry as part of the Strategic Defence and Security Review.

Rolls-Royce Submarines, Nuclear president and chief operating officer Jason Smith said, "This new facility will deploy advanced manufacturing techniques to enhance our world leading nuclear manufacturing capability."

Rolls-Royce, on behalf of the MoD, deals in nuclear submarine reactor systems and support services; incorporating design, manufacture, procurement and operation.