Nuclear Submarines

1
Nuclear Submarines

• Opportunities
• and
• Challenges

2
Nuclear Submarines

• The MoD believes that the UK should retain
  onshore a sovereign capability in the design,
  construction, operation, maintenance and
  decommissioning of nuclear-powered submarines.
• (Government response to House of Commons Defence
  Committees 4th Report of Session 2006-07)
• The ability to manage Nuclear Steam Raising Plant
  throughout its life-cycle, including fuel
  elements, is a strategic capability that must be
  retained onshore.
• (DIS, P71, 2005)

3
Nuclear Submarines

• MoD want Industry to consolidate and invest for
  the long-term to improve productivity and reduce
  costs
• The UKs fleet of nuclear-powered submarines
  requires a specialist sub-set of skills within
  the maritime industry. (DIS, P71, 2005).

4
Nuclear Submarines

• Built in the North West since 1960s
• Two types
• Astute attack submarines (7,200t)
• Nuclear deterrent submarine replacements
  (16,000t)
• Builder BAE Systems Submarines Solutions.
• Location Barrow-in-Furness
• Next launch - June 2007

5
UKs Nuclear deterrent Cm 6994

• Nuclear powered submarines carrying ballistic
  missiles represent, in engineering terms, one of
  the most complex and technically demanding
  systems in existence. (P28)
• It would be our intention to build new SSBNs
  (deterrent submarines) in the UK, for reasons of
  national sovereignty, nuclear regulation,
  operational effectiveness and safety, and
  maintenance of key skills. (P28)

6
Manufacture

• BAE builds nuclear submarines, including testing
  and commissioning of the reactors.
• Rolls-Royce (Derby) design and manufacture
  nuclear submarine propulsion.
• These products take 15 -20 years to bring into
  operation.
• There is a significant NW supply base.
• Order uncertainty jobs at risk

7
Opportunities

• 3-4 more Astutes may be ordered subject to
  quality, delivery and cost of first 3 plus CSR
  2007.
• Vote on future deterrent submarines allows for
  limited design work to take place 2007 2012.
• Circa 2012 the Government will vote on whether to
  purchase a new class of 3 or 4 deterrent
  successor submarines - or not!
• Detailed design, manufacture and delivery between
  2012 and 2027.

8
More than half the unit cost of a naval vessel
lies with firms other than the Shipbuilder. (DIS,
P73, 2005). Affordability must be a fundamental
consideration in any new submarine programme.
(HofC Defence Committee 4th report 2006)
9
UKs Nuclear deterrent Cm 6994

• Our initial estimate is that the procurement
  costs will be some 11-14 Bn (at 2006/07
  prices) for a four-boat fleet. (P26)

10
National Audit Offices Major Projects Report
2006 an expected total cost of 3,656 million
for Astute Class submarines 1-3.
11
Challenges - Skills

• Sir Peter Spencer (CDP) acknowledged that
  retaining the submarine skills base at Barrow was
  dependent on further orders. (HofC Defence select
  Committee 1st report Dec 2006).
• The UK submarine industry draws on a uniquely
  skilled and specialist workforce. (HofC Defence
  Committee 4th report 2006).

12
Skills

• Rolls-Royce (Derby), which builds the submarines'
  nuclear reactors, said it was already facing a
  "significant skills continuity challenge" over
  the next decade. (HofC Defence select Committee
  1st report Dec 2006).
• Many of the high order capabilities are dependent
  upon the specialist skills and expertise of SMEs.
• The capacity and experience within the UK
  submarine industry is less now than it was in
  1980. (UKs Nuclear deterrent Cm 6994, P10)

13
Skills Shipyard (min. No.s)
RAND Europe 2005
14
Challenges - Suppliers

• The submarine construction supply chain is
  fragile and is particularly susceptible to gaps
  in the programme. Extended gaps are likely to
  result in an erosion of the UK's submarine
  manufacturing and skills base. (HofC Defence
  select Committee 4th Report Dec 2006)
• When orders are placed Treasury will only
  sanction one vessel at a time.
• Suppliers exiting the market.

15
Nuclear Submarines

• Future orders may strengthen and grow the supply
  chain workforce if products are affordable and
  orders are forthcoming!
• BAE and its suppliers could have a very positive
  impact on the Northwests GVA gap.
• Servicing both defence and nuclear markets is a
  key opportunity.