Bangkok--11 Nov--Hill & Knowlton
Deal highlights Rolls-Royce long term commitment to manufacturing in the Kingdom
Rolls-Royce Thailand announced today that it has signed a 10-year long term agreement (LTA) with Weston SEA, a member of the Weston EU Group, for the production of compressor blades and vanes.
This is the first time that Rolls-Royce has signed a manufacturing agreement in Thailand and represents a significant milestone in the company’s well established relationship with the kingdom. Located in Chonburi Province, Weston SEA will produce compressor aerofoils for the V2500 engine.
The first of several scheduled phases covers the manufacture of both compressor aerofoil blades and vanes, beginning this year. Production targets for 2009 have been set at 180,000 pieces, increasing to 250,000 pieces in 2010. Weston SEA will assume responsibility for a significant proportion of the V2500 total engine programme, with market values in the range of USD 15 million per year for phase one alone.
Mr. Mike Mosley, Executive Vice President - Compressor Systems - Rolls-Royce, commented: “This new long-term partnership with Weston SEA is an exciting initiative, which highlights our commitment to Thailand. This partnership with a Thai-based manufacturer will contribute to developing and expanding Thailand’s aerospace manufacturing capability and will bring high-value, high-skills employment to the Chonburi Province. Meanwhile, we are continuing to review opportunities to further develop our manufacturing presence in Thailand.”
Mr. Richard H.J. Sutton, Chief Executive Officer of Weston SEA, said: “Being selected by Rolls-Royce to provide strategically important engine components clearly shows that Thailand can, and does, offer world-class manufacturing capabilities.”
Rolls-Royce has had a presence in Thailand since 1989 when it opened its regional office in Bangkok and today continues to be a key partner to the Thai airline industry, due in part to a long term relationship with Thai Airways International, Bangkok Airways, and PB Air.
In January 2008, the Rolls-Royce Trent 700 was selected as the engine of choice by Thai Airways International to power their new fleet of A330s, including a TotalCare contract. In February, Bangkok Airways placed orders for up to 6 Airbus A350 XWB aircrafts, to be powered by the Trent XWB engines, as part of their expansion plans. Most recently, in May, THAI also announced their choice of the Trent 900 to power their new fleet of A380 super-jumbo aircraft.
Today, there are well over 100 Rolls-Royce engines in use by airlines based in the kingdom. In addition, Rolls-Royce has also provided engines and support to the Royal Thai forces for many years, including the SuperLynx helicopters.
Note to editors:
Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets - civil aerospace, defense aerospace, marine and energy.
The Group has a broad customer base comprising more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries. It employs around 38,800 people worldwide people in offices, manufacturing and service facilities in 50 countries and has businesses headquartered in the UK, US, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people.
Rolls-Royce continues to invest in core technologies, products, people and capabilities with the objective of broadening and strengthening the product and service portfolio, improving efficiency and enhancing the environmental performance of its products. These investments create high barriers to entry.
4. Rolls-Royce is working hard to improve the environmental impact of its products. Each year, in collaboration with its partners, it invests over
?800 million on research and development, two thirds of which has the objective of reducing the environmental impact of its products. The primary technology investment area is aimed at reducing noise and emissions.
Sixty per cent of research and development investment and 40 per cent of new product development spending over the past five years has been outside the UK. Research and development is carried out in facilities in the UK, Germany, Italy, Singapore, Japan, the US and Scandinavia, with particularly strong relationships with the 29 universities where there are Rolls-Royce University Technology Centres.
Annual sales were ?7.4 billion in 2007, of which 55 per cent came from services revenues. The firm and announced order book at the end of 2007 stood at ?45.9 billion, of which aftermarket services represent 30 per cent, providing visibility of future levels of activity.
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