Latest News | 7 July 2026
Rolls-Royce breaks ground on major Raynesway expansion project
Rolls-Royce has started construction work on a major expansion project in Derby as it ramps up production for UK and Australian submarine programmes.
Rolls-Royce Submarines has officially broken ground on a new manufacturing facility at its Raynesway site, part of a wider investment programme that will more than double the size of the operation.
The expansion will add more than 100,000 sq m of manufacturing and office space and create 1,170 skilled jobs across engineering, manufacturing and support functions.
The investment is designed to increase production capacity for current and future submarine programmes operated by the Royal Navy and under the AUKUS defence partnership between the UK, Australia and the US.
Abi Clayton, president of Rolls-Royce Submarines, said: “Breaking ground is a significant step forward in the critical growth of our business.
“This expansion will more than double the size of our manufacturing facility, strengthening our capability and demonstrating our ongoing commitment to the Defence Nuclear Enterprise.”

Rolls-Royce first announced plans to double the size of the Raynesway site in 2023.
The Derby operation designs and manufactures the nuclear reactors that power every submarine in the Royal Navy fleet and will also supply reactors for Australia’s future SSN-AUKUS attack submarines.
The expansion comes amid a significant increase in investment in the UK’s defence nuclear sector as the Government seeks to accelerate submarine production and maintain the country’s nuclear deterrent capabilities.

Abi added: “Together with our trusted delivery partners, our commitment is to deliver this programme safely, efficiently and to the highest standards.
“This work will unlock much-needed manufacturing capacity on site, allowing us to enhance our delivery drumbeat to support the boat build programmes.”
The ceremonial groundbreaking was attended by Defence Minister Lord Coaker and Commodore Alistair Moody, director for nuclear propulsion at the Submarine Delivery Group.

During his visit, Lord Coaker met Rolls-Royce nuclear welding apprentices who recently secured the top four places in the SkillWeld 26 East Midlands heats.
He said: “Witnessing the manufacturing of the fifth SSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth, and keeping the UK safe.”