UK Defence News Round-up: Week 4

Rolls-Royce Wins Landmark ￡9bn Submarine Contract

In a major boost to the UK's defence industry, Rolls-Royce has been awarded a ￡9 billion contract to support the Royal Navy's fleet of nuclear submarines. The eight-year contract, dubbed "Unity," will create over 1,000 UK jobs and safeguard around 4,000 existing roles. The deal was announced by UK Defence Secretary John Healey MP during a visit to Rolls-Royce's nuclear reactor production facility in Derby.

The contract will see Rolls-Royce Submarines Ltd provide design, manufacture, and support services for the nuclear reactors that power the Royal Navy's submarines. The agreement is expected to deliver better value for money for the taxpayer, with savings of over ￡400 million predicted over the eight-year contract. The deal is part of the UK Government's Plan for Change, which aims to bolster Britain's security and strengthen the country's historic partnership with the US and Australia.

The announcement has been hailed as a significant boost to Britain's security and economy. Defence Secretary John Healey MP said, "This investment in Britain's defence will deliver a long-term boost to British business, jobs, and national security." He added, "We are showing defence can be an engine for growth, while also driving better value for taxpayer money." The contract represents a long-term commitment to a major British business, providing certainty and stability for the company and its supply chain.

The deal is also seen as a key milestone in the partnership between Rolls-Royce and the Submarine Delivery Agency (SDA). Sir Chris Gardner KBE, CEO of the SDA, said, "The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability." The contract will help streamline decision-making and foster a close partnership between industry and government, supporting the aims of the new Defence Industrial Strategy.

The UK Government has reaffirmed its commitment to the country's nuclear deterrent, with the contract forming part of the "triple lock" on the nuclear deterrent. This includes building four new nuclear submarines, maintaining a continuous at-sea deterrent, and delivering all necessary future upgrades. The Government's commitment to the nuclear deterrent is seen as essential for the country's national security in an increasingly uncertain world.

EDM Wins ￡2.8m Simulator Contract

EDM has been awarded a ￡2.8 million contract by the UK Ministry of Defence (MOD) to provide a Single Seat Crew Escape and Safety System Trainer (SS CESST) for Typhoon pilots. The contract is aimed at enhancing the training of Typhoon pilots and ensuring consistent training standards.

The SS CESST will provide a dedicated platform for pilots to master critical safety and escape procedures, allowing them to develop essential skills without impacting the availability of frontline aircraft. The simulator is designed to meticulously replicate the cockpit of an operational Typhoon, providing a realistic and immersive training experience.

The investment by the MOD is expected to minimize disruption to operational readiness and ensure that Typhoon pilots are fully equipped to handle any emergency. The simulator will play a crucial role in delivering the Training Objectives of the TTF 5702 Weapons Training Course, a comprehensive program covering all aspects of escape and safety systems.

EDM has a long-standing reputation for excellence in the simulation and training industry, with clients in civil aviation, defence, and rail. The company is recognized for its cutting-edge technology and commitment to quality. This latest contract win further strengthens EDM's position as a key provider of advanced training solutions within the defence sector.

The contract is a testament to EDM's expertise in providing bespoke training solutions that meet the specific needs of its clients. With this latest contract win, EDM is set to continue its tradition of innovation and excellence in the simulation and training industry.

LPA Announces Acquisition of Eaton's Power Tron Business

LPA has signed an agreement to acquire the UK trade and assets of Eaton Electrical Products Limited's Power Tron business. The deal includes the UK trading division and assets, including a small manufacturing capability in Cambridgeshire.

The acquisition is seen as complementary to LPA's current manufacturing capabilities for the rail industry. The company plans to insource some of the components currently outsourced by the business, with manufacturing to be undertaken at LPA's Yorkshire facility. This is expected to lead to increased sales volumes over time, leveraging LPA's extensive sales network.

Chairman Robert Horvath commented, "This acquisition is a key part of our ongoing strategy to keep our manufacturing units productive. It will support our delivery against our strategy and, together with the acquisition of the Red Box business last year, will make a significant difference to our monthly sales volumes."

The acquisition is also expected to benefit from LPA's international distribution network, which will help to drive sales growth. Additionally, the company is seeing progress in increasing sales in its aviation business, specifically in the connector side, as well as its Channel distribution business.

The deal marks a significant step forward for LPA, as it looks to build on its existing capabilities and drive growth in its manufacturing and sales divisions. With the acquisition of Power Tron, LPA is well-positioned to take advantage of new opportunities and continue to deliver on its strategic objectives.

Wescom Group Acquires BCB International Ltd

In a significant move, Wescom Group, a world-leading survival solutions manufacturer, has acquired Cardiff-based BCB International Ltd, a leading global supplier of safety equipment in the defence, outdoor, and marine sectors. This acquisition marks a significant expansion of Wescom Group's influence in the safety technology market.

According to Ross Wilkinson, CEO of Wescom Group, the acquisition is a strategic move to enhance the company's core safety and survival product portfolio. "We are excited to work with the management team on growing the business through our extensive distribution network, whilst also having a strong focus on new product development programs," he said.

BCB International's Managing Director, Andrew Howell, expressed his enthusiasm about the partnership, stating that it presents an exciting opportunity for the company to deliver its innovative products to a wider international audience. "We have known some of the Wescom team for many decades and it is invigorating to be working with them to help save lives and protect the protectors to a much larger scale," he said.

The acquisition is expected to leverage Wescom Group's extensive distribution network to increase BCB International's global footprint. Additionally, the partnership will focus on new product development programs, further enhancing Wescom Group's safety and survival product portfolio.

The deal marks a significant milestone for both companies, as they embark on a new chapter of growth and innovation in the safety technology market. With this acquisition, Wescom Group is poised to strengthen its position as a global leader in survival solutions, while BCB International will benefit from access to new markets and resources.