Rolls-Royce has installed new equipment and is making use of advanced manufacturing processes helping to boost productivity in order to meet customer demand. Over the next two to three years, Trent XWB production will grow to more than 300 engines a year, the equivalent of one every working day. The engine is expected to be in service for many years, creating an annuity of aftermarket services that will generate revenues for decades to come.
Business Secretary Sajid Javid said: “The opening is great news for the company, its workforce, and the UK. Aerospace is a great British success story. I want to capitalise on our world-leading capability so that we can win a big share of the £3.5 trillion market for new aircraft which will be needed over the next 20 years.”
Rolls-Royce chief executive Warren East said: “We are transforming our global industrial base and investing in innovative technology to help us deliver our record £76.5 billion order book. Our world-class Assembly & Test Facility in Derby will deliver a wide range of Trent civil aero engines including the Trent XWB. The Trent XWB engine is fundamental to the future growth of Rolls-Royce.”
Meanwhile, Rolls-Royce has presented the initial findings of East’s review of its operations. Initial findings include that the company has a strong portfolio of products and services providing highly differentiated, mission critical, power systems. However, it also has a complex business model with high embedded costs.
Nonetheless, East said the medium to long-term outlook remained good with strong long-term cash flows driven by significant growth in widebody aftermarket, industrial transformation and cost reduction programmes
East concluded: “As a group we are undergoing an unprecedented period of change. Change in our mix of business and how we account for it. Change in our industrial footprint as we invest in a wide-ranging transformation. And change in demand for our products as we double our large engine output and manage reductions in demand in other markets. These changes, while more painful than we expected in the near-term, are vital to our long-term success.”
