Rolls-Royce Wins Submarine Support Contract

Monday, December 10, 2001
Rolls-Royce won a second service contract from the Ministry of Defense to ensure the safety and power performance of Royal Navy nuclear submarines, in a deal worth more than $500 million. Under this contract, the company will continue to operate and maintain the Vulcan Naval Reactor Test Establishment site at Dounreay, Scotland, on behalf of the Ministry of Defense, to service and support Royal Navy programs over the next 13 years. This facility tests the operation and performance of the nuclear power plants used to support the UK submarine flotilla. On November 14, Rolls-Royce announced it had won a contract to provide a total powerplant support package, worth about $150 million over the next three years. Saul Lanyado, Rolls-Royce President -- Marine said: "Customer support is an important part of Rolls-Royce strategy, representing 40 percent of Group sales. The company has invested in enhancing its customer service capabilities and this contract is another example of the emphasis we place on continuing support to our customers. "We have in place two long-term agreements which provide Rolls-Royce and the Ministry with a clear vision of how our partnership will develop to ensure the performance and availability of the submarine flotilla." A key element of the Vulcan contract will be confirming the performance and safety of the long-life reactor core, part of the propulsion plant manufactured by Rolls-Royce. This type of core will power the new Astute class of submarines for their full platform life and will also be retrofitted to the Vanguard class. Rolls-Royce has operated the Vulcan site since 1964. The company has designed, supplied and supported all the reactor systems and equipment that powers the Royal Navy's nuclear submarine fleet.

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