Rolls-Royce has won its biggest-ever contract with the Ministry of Defence (MoD).
The engineering giant agreed a £9billion eight-year deal to make nuclear submarine reactors for the Royal Navy.
The contract – dubbed Unity –will create more than 1,000 jobs and safeguard 4,000 other roles.
Rolls-Royce shares hit a record high of 625p – giving it a value of £53billion – before ending the day down 4.8 per cent at 606.8p.
In focus: Rolls-Royce has won its biggest-ever contract with the Ministry of Defence
The deal will strengthen the Royal Navy’s continuous at-sea deterrent – under which at least one nuclear-armed ballistic missile submarine patrols the seas at all times – while also boosting the AUKUS defence pact with the United States and Australia, a spokesman for the MoD said.
The announcement comes after Donald Trump repeated demands for Nato members to spend 5 per cent of gross domestic product (GDP) on defence.
Amid rising tensions with Russia, highlighted by a Russian spy ship in UK waters this week, the Government has said it will increase spending to 2.5 per cent of GDP.
Defence Secretary John Healey said: ‘This is a clear demonstration of our commitment to the UK’s nuclear deterrent.’
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