$3 billion deal with UK gets Australia closer to having a fleet of nuclear-powered submarines

Australia is set to provide $3 billion to British industry to support the construction of nuclear-powered submarines and ensure its new fleet arrives on time.

Report informs via foreign media that the announcement at an annual gathering Friday comes a day after the two countries signed a defense and security pact to better meet such challenges as China's increasing presence in the South China Sea and South Pacific.

The 10-year deal will boost capacity at a Rolls-Royce factory in the United Kingdom to build the nuclear reactors that will propel the submarines being built by BAE Systems in Adelaide, Australia.