Graham has been awarded a £40 million contract by Rolls-Royce to deliver a new manufacturing facility in Derby as part of the client’s core production capability project.
Construction has started on the new facility, which will partially replace existing infrastructure and deploy advanced manufacturing techniques to enhance Rolls-Royce’s nuclear manufacturing capability.
The contract will run for three years. The bulk of construction will take place during the first two years; process equipment will be installed within the new facility during the third year of the programme.
The contract was won through a competitive tender process managed by Rolls-Royce’s indirect procurement function and supported by a cross-functional evaluation team.
The Treasury last year awarded Rolls-Royce a £1.1 billion contract to produce new reactor cores for the next generation of the UK’s nuclear-armed submarines.
The Ministry of Defence said the investment would secure 300 jobs and fund the work due to be carried out by Graham at Rolls-Royce’s plant at Raynesway, Derby.
Bam Construct won a £25m scheme last year to build a 42,000 sq ft Rotherham plant for Rolls-Royce to manufacture turbine blades for jet engines.
Construction News revealed in February that contractors including Balfour Beatty, Bam Construct, Interserve, Sir Robert McAlpine and Vinci are eyeing a £50m deal to build the 250,000 sq ft Aero Engine Controls building at Birmingham Business Park.
The contract builds on Graham’s recent nuclear and other industrial projects that include the construction of vaults for the disposal of low-level nuclear waste at Dounreay; a grouting facility, also at Dounreay; and a train maintenance facility in Belfast for Translink.
Graham director Leo Martin said: “We are delighted to have secured this high-profile contract for such a prestigious client.
“It is a challenging project, but one that we can bring to bear our experiences from working in the nuclear industry to ensure successful delivery.
“We will work proactively with Rolls-Royce, as we do with all our clients, to deliver this project of national importance safely and to programme.”
Graham’s civil engineering division is currently working on projects that include the design and build of a new £24m Riverside Terminal at Grimsby for Associated British Ports, and it was also part of the consortium that recently completed the £277m M80 Stepps-Haggs upgrade for Transport Scotland.