UK to order reactor for nuclear-armed submarine

Britain will order the first reactor for a new generation of nuclear-armed submarines next week as part of a 1 billion pound ($1.6 billion) contract with Rolls-Royce, a defense ministry source said on Sunday, in a move that could strain the coalition government.

The deal, including an 11-year refit of Britain's sole submarine propulsion reactor factory at Derby in central England, would protect 300 Rolls-Royce jobs and many others at suppliers elsewhere, the source said. It is expected to be announced by Defence Secretary Philip Hammond on Monday. (Reuters)