Rolls-Royce could create 300 new submarine jobs

The new jobs would allow some engineers to move over to the submarine division of the firm, which is based in Derby

Hundreds of jobs could be created at Rolls-Royce's submarine business just weeks after 2,600 job losses were announced in its aerospace division.

About 300 posts in Derby depend on the firm winning an upcoming contract, BBC has learned.

The jobs have not been confirmed, but a spokesman said it expected growth would mean "opportunities for redeployment".

Rolls-Royce, which is the world's second largest aero-engine maker, also builds engines for nuclear submarines.

Compulsory redundancies

Recruitment has already started in the firm's nuclear division, with 30 Derby-based posts advertised on the Rolls-Royce website.

A voluntary redundancy scheme for engineering staff, which has been opened in Derby, Hucknall, Bristol and Birmingham, has so far received 675 applications.

Under the scheme, an estimated 300 staff are expected to leave the aerospace division by early next year.

About 1,200 engineering jobs are being cut from the firm's aerospace division, with 800 of those in the UK, but no compulsory redundancies are expected before August.

After last month's announcement of the 2,600 job losses, the company said the cuts would "contribute towards Rolls-Royce becoming a stronger and more profitable company".

In October, it warned that underlying revenues for 2014 would between 3.5 and 4% lower than expected.