Rolls-Royce transmission deal with Safran

Posted on 5 Jul 2014 by Victoria Fitzgerald

Jet engine manufacturer Rolls-Royce is safeguarding its supply chain by striking a deal with European engineering and defence business Safran, The Telegraph has reported.

The Derby-based manufacturer has signed a memorandum of understanding with Safran to develop accessory drive train transmission systems, components mounted on the jet engines which are used to remove power from the turbine’s shaft.

The energy will be redistributed to other systems such as fuel pumps, hydraulics and electricity generators.

Safran already supply Rolls-Royce with components for its engines.

The partnership will allow the two companies to combine skills to innovate the transmission systems by developing weight reduction methods and delivering efficiencies in the supply chain.

The terms of the agreement state that each firm will have a 50:50 stake in the deal and will be based in France, with operation facilities in Germany and the UK.

The contract will help safeguard the supply of a key component of jet engines for Rolls-Royce and follows last year’s announcement of rival General Electric’s purchase of Avio SpA, an Italian manufacturer specialising in transmissions, gearboxes and turbines.

A representative for Rolls-Royce said the company hoped to finalise the agreement over the coming months.

The deal is not expected to see the transfer of staff.