BAE Systems wins MoD nuclear submarine deal

BAE Systems has won an extension to its nuclear submarine deal from the UK Ministry of Defence, taking the value of the work on the Astute-class vessel to £1.3bn.

BAE's contract covers the design and remaining build, test and commissioning activities on the fifth Astute Class submarine, called Anson.

After manufacturing began in 2010, Anson is scheduled to leave BAE's Cumbrian works for sea trials in 2020.

"Signing this contract is an important milestone in the Astute programme," said Tony Johns, managing director of BAE's submarines unit. "This is a hugely complex national endeavour and we are proud of the role we play in helping to protect our nation's interests."

He noted that HMS Astute and HMS Ambush, the first two of the class, were already demonstrating their capabilities with the Royal Navy, while the third submarine in the class, Artful, is in the midst of her own sea trials.

"The build phase for the fourth, Audacious, is also well advanced, so we continue to make positive progress across the programme."

The fifth, sixth and seventh boats will be named Agamemnon, Anson, and Ajax. All Astute class submarines are powered by a nuclear-reactor and provide land strike, strategic intelligence-gathering, anti-submarine and surface ship warfare capabilities.

The Anson contract extension was announced by Philip Dunne, the minister of state for defence procurement, during a visit to the company on Thursday.

He said: "This £1.3bn contract marks an important step in the progress of the Astute programme. This is a key part of our £166bn plan to ensure that our armed forces have the equipment they need to defend the UK’s interests across the seas, in the skies and on land, both at home and abroad."