Barrow shipyard owner BAE Systems has signed a new multi-million pound deal with contractor Ultra Electronics Holdings.
The London-based firm is set to provide BAE Systems Maritime-Submarines with a hybrid electric propulsion system.
This deal is worth £37m and was announced to the London Stock Exchange this morning.
The announcement said Ultra will provide "non-recurring engineering and qualification of the system". It will also initially provide equipment.
This new system is expected to be more efficient than those in use at present.
Ultra's chief executive Rakesh Sharma said: "We are pleased by this contract as it showcases our specialist technology which has received company funded R&D for many years and reinforces our position as a leading provider of submarine propulsion technology.
"We are also pleased to be further developing our relationship with BAE Systems."
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