Rolls-Royce to invest GBP 150 mln in aero engine sites in Singapore, U.S.

Rolls-Royce plans to invest GBP 150 mln in two new aero engine facilities in Singapore and in Virginia in the United States over the next five years.

Over the last decade, Rolls-Royce has established a strong position in world markets and is investing in new capability in order to meet the increasing needs of its growing customer base around the world.

The decision to locate the new facilities was driven by three strategic considerations: the attractions of locating major facilities close to customers in two of the largest and fastest growing aerospace markets in the world; the business continuity benefits that will arise from locating the assembly and test of Trent engines on two continents; and a reduction in the company’s exposure to the dollar.

Rolls-Royce has become a global company, with 45% of its research and technology, 40% of its employees and 50% of new programmes, already located outside the UK. At the same time, the company has maintained its commitment to the UK and over the last five years, has invested GBP 837 mln in UK capital projects, which accounts for 80% of its worldwide capital investment over this period.

Rolls-Royce will build a new facility in Singapore to assemble and test large civil engines, starting with the Trent 1000 for the Boeing 787 and the Trent XWB for the Airbus A350 XWB.

Together with its existing UK facility in Derby, this will provide dual sourcing capability for the assembly and test of large civil engines, including future new versions of the Trent engine.

The new facility will be located in an Aerospace Park at Seletar in the north of Singapore and will be fully operational by the end of 2009. It will employ up to 330 people depending on customer demand and will receive support from the Singapore Economic Development Board.
The new facility in Virginia will assemble and test the RB282, the engine selected in June by Dassault to power its new super midsize corporate jet and potentially the first in a family of small engines for the corporate and regional jet market. More than 90% of corporate aircraft are manufactured in the US, which is today the most significant market for these products.

The development and production proving programmes for the RB282 will be undertaken in the UK at recently completed facilities in Bristol.

The new facility in Virginia will also have the capability to undertake blisk manufacture for the F136 engine for the Joint Strike Fighter (JSF). It will be located at Prince George County and will be fully operational by the end of 2009.

With a firm and announced order book of GBP 35 bln at June 2007, Rolls-Royce has a 49% share of the modern wide-body commercial aircraft market, with its Trent engine having been selected to power a broad range of new civil airline programmes, including the Trent 900 on the Airbus A380, the Trent 1000 on the Boeing 787 and the Trent XWB on the Airbus A350 XWB.

Rolls-Royce is also a key team member on two aspects of the US Joint Strike Fighter (JSF) programme, as a 40% partner on the alternate engine (F136) with General Electric and separately as a key partner providing the vertical lift components for the short takeoff and vertical landing (STOVL) variant.