LONDON Feb 13 Aero engineer Rolls-Royce
has agreed a new ten year contract with Britain's Ministry of
Defence (MoD) which will help the department save up to 200
million pounds ($313 million) and sustain up to 2000 jobs in the
The company said on Wednesday that the new contract, which
is worth around 800 million pounds, would help deliver cost
savings around the provision of nuclear propulsion systems for
Britain's existing and future submarine flotilla.
Rolls-Royce said the deal reinforces Britain's commitment to
the submarine programme.
Britain's 2010 Strategic Defence and Security Review (SDSR)
set the course for future UK defence spending, in which the
government said it would cut spending by 8 percent up to 2015.
The government has been trying to bring order to a defence
ministry widely lambasted by watchdogs and others for its
chaotic and expensive weapons programmes.