Investment News | 15 July 2026

Rolls-Royce breaks ground on major Raynesway expansion project

Share this post:

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.

Elsewhere, Rolls-Royce has also announced plans to open a new £12 million facility in Derby, which will play a key role in the delivery of mini nuclear power stations both in the UK and overseas.

Pioneer Works will be Rolls-Royce SMR’s first manufacturing development centre where it will establish the build processes, precision assembly and advanced testing needed to de-risk the delivery of its Small Modular Reactor projects in the UK, Czechia and Sweden.

A non-nuclear site, it will house specialist engineering and manufacturing projects critical to the successful deployment of Rolls-Royce SMR’s first power plants.

It will create and sustain around 40 highly skilled, long-term roles as the facility ramps up, spanning advanced engineering, welding, testing, precision assembly and manufacturing development, while helping train the next generation in these vital skills.

Ruth Todd CBE, director of operations and supply chain at Rolls-Royce SMR, said: “Pioneer Works will be at the centre of our ambition to transform the way nuclear projects are delivered, creating highly skilled jobs, supporting the wider supply chain and harnessing British engineering know-how to drive forward the next generation of nuclear power.

“I’m also incredibly proud that this facility will act as our first training centre to create a future workforce, which will help build Rolls-Royce SMR’s ‘factory-built’ nuclear power plants around the world.”


Related Articles...

Contact us

 

 

 

 

 

 

 

Find out more

This will close in 0 seconds