BAE Systems to Play a Key Role in the Delivery of AUKUS Submarines

Rhea-AI Summary

On March 13, BAE Systems (OTC-PINK:BAESY) announced its pivotal role in the AUKUS trilateral agreement, aiding Australia in acquiring its first nuclear-powered submarines. This initiative, involving the UK and the US, focuses on developing a new submarine design, expected to commence construction this decade. BAE Systems CEO, Charles Woodburn, highlighted the agreement as a significant enhancement of international partnerships. The company has invested over £1 billion in its Barrow-in-Furness facilities and plans to recruit 1,000 new apprentices and graduates, reinforcing its commitment to the UK’s submarine programs.

Positive

• BAE Systems selected as a major partner in Australia's nuclear submarine program under AUKUS.
• Investment exceeding £1 billion in Barrow-in-Furness infrastructure strengthens capabilities.
• Plans to recruit 1,000 apprentices and graduates support future submarine programs.

Negative

• None.

LONDON--(BUSINESS WIRE)-- On Monday 13 March, as part of the AUKUS trilateral agreement between Australia, the United Kingdom and the United States, it was announced that BAE Systems will play a key role in helping Australia to acquire its first nuclear powered submarines.

SSN-AUKUS (Photo: Business Wire)

The three nations will deliver a trilaterally developed submarine, based on the UK’s next generation design, incorporating technology from all three nations. Australia and the UK will operate SSN-AUKUS, as their submarines of the future, with construction expected to begin this decade.

Charles Woodburn, BAE Systems Chief Executive, said: “The AUKUS agreement will further enhance and deepen the relationship between the United Kingdom, the United States and Australia. The selection of the UK’s next generation submarine design is a significant development in that partnership and is a testament to the skills, commitment and ingenuity of everyone involved in both our Submarines business and the wider UK submarine enterprise.

“We employ more than 10,000 people in our Barrow-in-Furness shipyard delivering the Astute and Dreadnought submarine programmes for the UK’s Royal Navy and we’re extremely proud to be selected as a major partner in this historic endeavour which will ultimately enable Australia to acquire its own sovereign nuclear powered submarine fleet.

“As a key player in the Australian maritime enterprise, we also look forward to working with the Australian government to explore how we could potentially provide additional support to this important tri-national programme through our business in Australia.”

BAE Systems has delivered five Astute class submarines to the UK Royal Navy, with the final two boats at advanced stages of construction at its shipyard in Barrow-in-Furness. The first three of four Dreadnought submarines are also under construction at the site and the Company’s engineers are undertaking early design work on the replacement for the Astute class under a £85m contract announced in September 2021.

More than £1bn has been invested to develop and expand infrastructure at Barrow over recent years, including £25m in a state of the art training academy. Since 2020, BAE Systems has recruited more than 1,300 apprentices and graduates into its UK Submarines business, with plans to recruit a further 1,000 early careers trainees this year as it continues to invest in skills to support the delivery of the UK’s submarines programmes.

037/2023

Issued by:
BAE Systems plc
Media hotline: +44 (0) 7801 717739
www.baesystems.com
@BAESystemsplc

View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005805/en/

Kristina Anderson, BAE Systems

M: +44 (0) 7540 628 673

E: Kristina.Anderson@baesystems.com

Source: BAE Systems plc

FAQ

What role is BAE Systems playing in the AUKUS agreement?

BAE Systems is a key partner helping Australia acquire its first nuclear-powered submarines as part of the AUKUS trilateral agreement.

What is the expected timeline for the construction of the submarines?

Construction of the submarines is expected to begin this decade.

How much has BAE Systems invested in its Barrow-in-Furness facilities?

BAE Systems has invested over £1 billion to develop and expand infrastructure at Barrow-in-Furness.

What are BAE Systems' plans for recruitment?

BAE Systems plans to recruit 1,000 apprentices and graduates this year to support submarine programs.

What submarine design will Australia use?

Australia will utilize a new submarine design developed through collaboration with the UK and the US.