Rolls-Royce Submarines has begun construction work on a major expansion of its Raynesway facility in Derby, marking a significant milestone in a programme that will more than double the size of the site and create more than 1,100 skilled jobs.
The company has officially broken ground on a new manufacturing facility that forms part of a wider investment to expand production capacity for the UK’s submarine programmes and support future requirements under the AUKUS security partnership.
Once complete, the expansion will add more than 100,000m² of manufacturing and office space to the Raynesway site and create 1,170 skilled roles across manufacturing, engineering and other technical disciplines.
The development is designed to increase manufacturing output as demand grows from both the Royal Navy and the Royal Australian Navy for current and future nuclear-powered submarine programmes.
A ceremonial groundbreaking event was attended by Defence Minister Lord Coaker, Rolls-Royce Submarines President Abi Clayton and Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group, highlighting the collaboration between industry, government and defence.
The expansion follows Rolls-Royce’s 2023 announcement that it would double the size of its Derby operation, where it designs, manufactures and supports the nuclear reactors that power every Royal Navy submarine. Under the AUKUS partnership between the UK, Australia and the US, the company will also supply nuclear reactors for Australia’s future SSN-AUKUS attack submarines.
Breaking ground is a significant step forward in the critical growth of our business,” she said. “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.
Abi Clayton, President of Rolls-Royce Submarines
During the visit, Lord Coaker also met Rolls-Royce nuclear welding apprentices, whose recent success saw the company secure first, second, third and fourth places in the SkillWeld 2026 East Midlands heats – the first time a single employer has claimed the top three positions in the regional competition.
The national competition showcases the skills of trainee and apprentice welders and comes after Rolls-Royce apprentice Jack Billingham was selected to represent Great Britain at the forthcoming WorldSkills competition in Japan.
Lord Coaker said the expansion demonstrated the government’s continued commitment to the UK’s defence manufacturing capabilities.
“The expansion of the Rolls-Royce site is a clear demonstration of the government’s commitment to the UK’s nuclear deterrent,” he said.
“Witnessing the manufacturing of the fifth SSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth, and keeping the UK safe.”
Commodore Alistair Moody said the investment reflected the shared ambitions of the UK and Australian governments to accelerate submarine production.
“The ongoing expansion work at Raynesway demonstrates the shared commitment of the UK and Australian governments to meet the ambitious pace of our submarine build programmes,” he said.
“Delivering this work is a national endeavour and continues to drive growth, strengthen security and sustain tens of thousands of jobs across the UK.”
Rolls-Royce Submarines currently employs more than 5,500 people and is responsible for designing, manufacturing and supporting the pressurised water reactors used across the Royal Navy’s submarine fleet. The business is supporting both the Astute and Dreadnought submarine programmes while providing in-service support from its Derby operations centre and specialist teams based across the UK.
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