UK defence contractor BAE Systems secures £3.95bn submarine contract for Aukus

BAE Systems, the largest defense firm in Britain, has been awarded a contract worth £3.95 billion ($4.82 billion) to construct a new fleet of submarines. This comes as part of the Aukus pact, a security agreement between the US, UK, and Australia. The purpose of the pact is to counter China's ambitions in the Indo-Pacific region. China has strongly criticized the deal. BAE Systems CEO, Charles Woodburn, expressed pride in the company's involvement in the submarine program. The funding will cover development work until 2028, with manufacturing expected to begin later in the decade. The first SSN-Aukus submarine is slated for delivery in the late 2030s. Both the UK and Australia will utilize these submarines, based on a British design. The investment will secure the UK's strategic advantage and maintain its position in a contested global order, said UK Defense Minister Grant Shapps. BAE Systems stated that the SSN-Aukus will be the Royal Navy's largest, most powerful, and advanced attack submarine, eventually replacing the Astute class. The agreement will bring long-term work to BAE Systems' shipyard in Barrow-in-Furness, benefiting over 10,000 employees. The deal will also finance significant investment in the site, the supply chain, and the hiring of over 5,000 workers. Rolls-Royce Submarines will provide the nuclear reactor plants for the SSN-Aukus vessels, and Babcock International will work on the design in a five-year deal with the Ministry of Defence. The Aukus security alliance, announced in September 2021, has faced backlash from China. However, the three countries involved assert that the pact aims to maintain stability in the Indo-Pacific region.