Rolls-Royce Forms JV To Supply Accessory Drive Train Transmissions for Civil Aircrafts

Cruising High: Rolls-Royce Forms JV To Supply Accessory Drive Train Transmissions for Civil Aircrafts

British engineer company Rolls-Royce has indicated that it has finalised the deal for the creation of a JV for designing and developing accessory drive train transmissions for the company's future civil aircraft engines. The UK based company has formed the joint venture with Hispano Suiza which is part of the France based aerospace and defense company called Safran. The JV will run for an initial 25 year contract and contribute to a wide range of aircrafts. This also comprises the new Airbus A300 neo jet. The companies have indicated that the production plant would commence operations in a “competitive country” at the start of next year. The deal was first announced by the 2 companies in July.

This is a long term joint venture and the London listed engine maker is all set to develop its own equipment for its civil aircraft engines. The final agreement has been signed by the UK based as well as the France based company for creating a jointly owned company for this purpose. The JV is based on an initial contract of 25 years and it will cover an entire range of civil aircraft from business jets to widebody commercial jets. It will contribute specifically to the Air Bus A330 neo, which is a new aircraft, reports Reuters. The new aircraft is one for which FTSE 100 engineers won the engine contract earlier in the year. Rolls-Royce share prices had risen on the Airbus engine deal.

Operations of the production plant will commence in late 2016 or the earlier half of 2017. The JV will employ around 180 persons and this includes staff from the parent companies as well. The MoU for the deal had been signed for developing a JV with the Safran unit for creating accessory drive train transmission systems for the aircraft. At that time, the companies had revealed the JV would be based in France with operations in the UK and Germany. But as of now, the location of the production plant has not yet been revealed. The drive transmissions are specifically crafted for engines such as the Trent 7000 reports the Telegraph. The Trent 7000 is the new engine being developed at the UK major's civil aerospace unit in Sinfin. It will power the Airbus A330nro and the joint venture will be headquartered in the Colombes site in greater Paris at Hispano-Suiza's unit. The JV will also operate from Rolls-Royce sites in Derby and Dahlewitz in Germany. The company will employ 180 workers with staff from both the companies employed in the JV.

Norbert Arndt, Rolls-Royce's executive VP for structures and transmissions was quoted by the media as saying "With each parent company contributing its world-class skills to this joint venture, we have taken a major step forward in performance. Our aim is to meet the requirements of our customers, both aircraft-makers and airlines, by giving them outstanding, cost-competitive products."

Helene Moreau-Leroy, chairman and CEO of Hispano-Suiza, also said, as per the Telegraph that "For both Rolls-Royce and Hispano-Suiza, the creation of this joint venture marks a major step towards the consolidation of our historical relationship within a long-term partnership and enables us to stake out a position on new aircraft programmes.