Rolls-Royce begins major UK manufacturing expansion to support UK and Australia defence projects. - Content Director Published: Jul 6, 2026 Rolls-Royce has reached a major milestone in the expansion of its Raynesway manufacturing site in Derby, beginning construction on a new production facility that will more than double manufacturing capacity to support UK and Australian submarine programmes while creating more than 1,100 skilled jobs. UK manufacturing investment. Rolls-Royce Submarines has started foundational work on a new manufacturing facility at its Raynesway site in Derby, marking the next phase of a major expansion programme designed to increase production capacity for current and future submarine reactor programmes. The wider development will more than double the size of the manufacturing site, adding more than 100,000 sqm of manufacturing and office space while creating 1,170 skilled roles across manufacturing, engineering and other technical disciplines. Manufacturing capacity expansion underway. Ground has now been broken on the new manufacturing facility, with the ceremonial event attended by Lord Coaker, Abi Clayton and Commodore Alistair Moody. The expansion is intended to increase manufacturing output to meet growing demand from the UK Royal Navy and the Royal Australian Navy while supporting current and future submarine programmes. Originally announced in June 2023, the project will significantly increase production capacity at the Raynesway site, where the company designs and manufactures the nuclear reactors that power the Royal Navy's submarine fleet. Under the AUKUS partnership, the facility will also produce reactors for Australia's future SSN-AUKUS submarines. Unlocking additional production capability. According to the company, the expansion will create additional manufacturing capacity to improve production throughput across submarine reactor programmes. "Breaking ground is a significant step forward in the critical growth of its business. This expansion will more than double the size of its manufacturing facility, strengthening its capability and demonstrating its ongoing commitment to the Defence Nuclear Enterprise. "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," said Abi Clayton, President of Rolls-Royce Submarines. Investing in manufacturing skills. During the visit, Lord Coaker met Rolls-Royce nuclear welding apprentices who secured first, second, third and fourth place in the SkillWeld 26 East Midlands heats, marking the first time one company has taken the top three positions in the competition. SkillWeld is a national competition that benchmarks the capabilities of trainee and apprentice welders. The visit also highlighted apprentice Jack Billingham's selection to represent Great Britain at the WorldSkills competition in Japan. The expansion programme will create 1,170 skilled positions across manufacturing, engineering and related disciplines, supporting long-term workforce growth alongside increased production capacity. Supporting long-term manufacturing programmes. Rolls-Royce Submarines currently employs more than 5,500 people and designs, manufactures and provides in-service support for the pressurised water reactors used across the Royal Navy's submarine fleet. The company is currently supporting both the Astute and Dreadnought submarine programmes through the delivery of reactor plants and associated components, while also providing operational support for reactor plant equipment from its Derby operations centre. "The expansion of the Rolls-Royce site is a clear demonstration of the government's commitment to the UK's nuclear deterrent. "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," said Lord Coaker, UK Minister of State for Defence. Strengthening manufacturing capability. The Raynesway expansion forms part of a wider programme to increase manufacturing capability in support of long-term submarine construction programmes. "The ongoing expansion work at Raynesway demonstrates the shared commitment of the UK and Australian governments to meet the ambitious pace of its submarine build programmes. Together, Emeoutlookmag is building the foundations for delivery to defend its nations for decades to come. "The significant nuclear enterprise investment confirmed in the DIP reflects the UK's unwavering commitment to maintaining and renewing our nuclear deterrent, a capability that has protected the UK and our allies for almost 60 years. Delivering this work is a National Endeavour and continues to drive growth, strengthen security and sustain tens-of-thousands of jobs across the UK," said Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group. Once completed, the expanded Raynesway site will provide additional manufacturing and engineering capacity to support the production of nuclear reactors for UK and Australian submarine programmes while strengthening Rolls-Royce's long-term manufacturing capability in Derby. This article was produced by the editorial team at EME Outlook and published as part of the Outlook Publishing global network of B2B industry magazines. Outlook Publishing delivers industry insights, company stories, and sector coverage across manufacturing, mining, construction, healthcare, supply chains, food production, and sustainability. EME Outlook provides ongoing coverage of organisations and developments shaping industries across Europe and the Middle East.

Inside the 100-year-old Derby hangar behind Rolls-Royce's engine revival. Updated: 03:06 EDT, 5 July 2026 Derby's sprawling Rolls-Royce campus, employing 15,000 people, has been at the cutting edge of British industry for more than a century. And it is in a 1920s block at the heart of the vast site that the FTSE 100 giant's recent recovery has taken flight. Rolls-Royce turned to the building, derelict for decades, when the firm's Trent 1000 engines suffered major problems resulting in cracks and erosion. Millions of pounds of investment later - but with its century-old roof and gantries still intact - the hangar was retooled for use in a major programme of engine upgrades as the company battled to fix the issue and restore its reputation. It is the oldest part of the Derby site but symbolises Rolls-Royce's stunning recovery as a powerhouse of UK industry under hard-charging chief executive Tufan Erginbilgic, who took over in 2023. After its near-collapse during the pandemic, Erginbilgic has powered the group back to profitability. And today its core civil aviation business is not only seeking to shore up its relationship with airlines affected by the Trent 1000's problems but seeking - and winning - new carriers as customers. Masterminding: After its near-collapse during the pandemic, Erginbilgic has powered the group back to profitability At the heart of the renaissance are new aero turbine blades redesigned to keep them cool amid the intense heat and pressure required to power an airliner's engine - and therefore able to endure much longer time 'on wing' before needing to be replaced. That has been done by changing the patterns of tiny holes on the 68 blades of the turbine, as well as subtly reshaping them, with the aim of maximising the cooling air that flows through. Such is the effectiveness of the system that engineers say a block of ice in a 200C oven would be kept intact by its cooling effects. 'These components are in the hottest part of the engine,' explains Rachel Walker, Rolls-Royce's Trent 1000 programme director. 'They endure some of the most strenuous stresses. 'This blade will endure the force equivalent to around a double-decker bus hanging off the end of it while it's spinning round in the engine. It's pretty phenomenal what it can withstand.' Rolls-Royce says that its redesign improves the cooling of the blade by 40 per cent. The company has now replaced older blades on nearly half of its Trent 1000 engines. And a further redesign has reshaped the blade to reduce stresses, further extending its lifespan. Ultimately it will mean time 'on wing' is tripled compared with what it was before both phases of improvement, Walker said. Replacing the blades was the reason for Rolls reopening its historic 1920 hangar in 2022. Here, amid a whiff of kerosene, The Mail on Sunday watched as an engineer pulled out fuel pipes from a barrel-sized high-pressure system as part of the work of refurbishing one turbine, its blades browned by wear and tear of its time in the skies. This work can be a matter of days. On the other side of the campus in another vast hangar, bigger engine overhauls - part of the regular maintenance of aircraft engines - take place. This work can take longer - sometimes months - as engineers strip down turbines and assess the work that needs to be done. Parts are taken out, fixed, and cleaned in baths of chemicals. Then refurbished engines are finally taken to 'test beds' - towering concrete warehouses - where they are fired up for six or seven hours to replicate a flight. Engineers stay at a distance, monitoring remotely to avoid being exposed to the unearthly roar. And for the huge turbines, enormous trailers are needed to transport them around the site. These trailers are named after their colours - the 'green monster' and 'burgundy beast'. All of this work is a round-the-clock undertaking - or almost. It is 24 hours a day, for six and a half days, with Saturday night off. An exception has been made for the World Cup, with workers spared two hours to watch England in the football tournament. The catch is they have to make up for it before or after the game. And of course engines need testing in the air. A highly modified, Rolls-Royce-branded Boeing 747 jumbo named Spirit of Excellence was until last year used to test new engine technology, including the Trent 1000 engine. The scale of the processes demonstrates how an engine maker's job goes on far beyond the moment their handiwork leaves the factory gate. In another part of Derby, staff monitor a wall computer display showing the movements of around 850 aircraft across the globe, powered by Rolls-Royce engines. Each is represented by a small white icon which can turn red if an issue is spotted. The 24-hour operation is alert to warning signals coming from aircraft or even hints from social media that a problem may be occurring. That prompts them to be ready if an airline gets in touch seeking help - or to contact the carrier themselves - and work out how, if necessary, a part can be shipped out to wherever they are in the world as soon as possible. Major incidents are very rare, says one member of staff. However, the team must be on alert for lower-level challenges at all times. 'There is always something going on here,' he says, with a smile.