Rolls-Royce (LON:RR.) has secured a £1 billion contract from the UK Ministry of Defence to supply reactor cores for the country's nuclear-armed submarine fleet.
The engine and turbine giant said the deal includes the refurbishment of its existing submarine reactor core manufacturing facility in Derby.
Rolls-Royce will also complete a phased rebuild to provide a manufacturing facility to support future MoD programme needs.
“This is excellent news that demonstrates the high level of trust the MoD has in both our technology and the expertise of our highly skilled workforce,” said chief operating officer of the group’s nuclear division Jason Smith.
“This new facility will deploy advanced manufacturing techniques to enhance our world leading nuclear manufacturing capability.”
Shares in Rolls-Royce, which is a constituent of the FTSE 100 index, rose one percent to 83o.5 pence by 10:50am, giving it a market cap of £15.55 billion.