Member Article

Rolls Royce buys out US partner

Rolls Royce have outlined plans to buy out their US partner, in a move which will see the firm take full control of a major UK engineering business.

Aero Engine Controls employs around 1,400 people in Birmingham, Derby and Belfast. The firm was formed in 2009 to combine the engine control businesses of Rolls and Goodrich.

The products produced at the plant play a vital part in the enhancement of fuel efficiency and overall performance of jet engines.

Commenting on the deal, a spokesperson from Rolls Royce said: “This acquisition will give Rolls-Royce full ownership of a critical capability that confers competitive advantage.”

No value has been placed on the deal agreed between Rolls and United Technologies, who are in the process of acquiring Goodrich.

Aero Engines are now preparing for a move to a £60 million purpose-built research, design, development and manufacturing facility in Solihull. The 1,100 staff based in the West midlands will relocate to the site during 2014.

Rolls Royce spend £65 million annually on sourcing new materials, parts and services in the UK alone to manufacture systems for the aerospace sector.

This was posted in Bdaily's Members' News section by Ruth Mitchell .