Nuclear initiative and XWB engine orders for R-R

Rolls announced that it is establishing a new business unit to address the global market for civil nuclear power. The company estimates that this worldwide market could be worth £50 billion a year in 15 years time. Rolls says it currently has the largest nuclear skills base of any UK company and the UK’s most substantial nuclear supply chain, comprising around 260 suppliers. It boasts that its strength in nuclear power originates from its involvement in the nuclear steam raising plant for the Royal Navy’s nuclear submarine programme and its work on safety critical instrumentation and control for civil nuclear reactors in Europe, including France’s 58 reactors, the US and other markets such as China. Meanwhile, on the aero engines front, it has reached an agreement with Asiana Airlines of South Korea to supply Trent XWB engines for 30 firm and 10 option Airbus A350 XWB aircraft. Asiana will be the first Korean customer for the Trent aero engine. If all options are realised, the value of the engine order at list prices is $2.4 billion. In addition, Asiana Airlines will back the Trent XWBs with a long-term maintenance agreement. This is the first time Rolls-Royce has been chosen as an engine supplier by Asiana Airlines, although the airline operates a number of Airbus A320 and A321 aircraft powered by the V2500 engine, in which Rolls-Royce is a major shareholder. The company also announced that the potential value of Monday’s order from the United Arab Emirates airline Etihad Airways’ order for up to 50 Airbus A350 XWB aircraft powered by Trent XWB engines, with long-term support, is $4.5 billion.