Rolls-Royce to invest £100m in UK facilities

Manufacturing News, Source : TheManufacturer.com
Published : 30 Apr 2004 9:41

Rolls-Royce is set to invest more than £100 million in the UK over the next two and a half years in manufacturing facilities specialising in compression systems, combustion systems, component services and turbine systems.

Employees in these facilities, located at Derby, Bristol, Barnoldswick in Lancashire and Hucknall near Nottingham, have agreed to the implementation of modern working practices to support these investments.

Rolls-Royce currently manufactures 30 per cent by value of its engines and focuses on high value-added components. The remaining 70 per cent is purchased from global suppliers. Last year the company made significant progress with its initiative to restructure its supply chain, with fewer suppliers providing a higher proportion of engine value.

“This is an excellent opportunity to take our manufacturing operations to a world-class level through investment in leading-edge facilities,” said chief operating officer John Cheffins. “This investment, combined with a talented workforce and the implementation of modern working practices, demonstrates our confidence in the UK as a centre for high value-added manufacturing operations.'

Investment in new facilities is already a key element of Rolls-Royce's strategy, including a new turbine blade facility built in Derby in 1999 and a compressor blade facility opened in Scotland last year. These together represent an investment of £130 million. The cost of manufacturing compressor blades in 2005 is expected to be half that of 1995.

The company hopes to obtain the necessary planning permission to commence construction of the new facilities in the summer. The investment costs will be contained within the company's current guidance for capital expenditure, of approximately £200 million a year.

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