Rolls-Royce and Hispano-Suiza (Safran) sign final agreement to create joint venture
London, October 24, 2014
Following the Memorandum of Understanding (MoU) announced by Rolls-Royce and Hispano-Suiza (Safran) on July 4, 2014, Norbert Arndt, Rolls-Royce Executive Vice President, Structures and Transmissions, and Hélène Moreau-Leroy, Chairman and CEO of Hispano-Suiza, have signed a final agreement to create a jointly-owned company that will design, develop, produce and support accessory drive train transmissions (ADT) for all of Rolls-Royce's future civil aircraft engines.
The new company will capitalize on its parent companies' combined experience and expertise, encompassing the design and production of accessory drive transmissions by Hispano-Suiza, and engine design and propulsion system integration by Rolls-Royce.
Based on an initial exclusive 25-year contract, the joint company will cover the entire range of civil aircraft, from business jets to widebody commercial jets. In particular, it will contribute to the Airbus A330neo, a new aircraft for which Rolls-Royce won the engine contract in July 2014 with its Trent 7000.
The new joint venture company will be headquartered at Hispano-Suiza's site in Colombes, in the greater Paris area, and will also operate at Rolls-Royce's facilities in Derby (United Kingdom) and in Dahlewitz (Germany).
A production plant will be built in a competitive country starting in 2015, with the aim of starting operations in late 2016 or early 2017. The joint venture company will initially total about 180 employees, including staff from its parent companies.
"With each parent company contributing its world-class skills to this joint venture, we have taken a major step forward in performance," said Norbert Arndt, Rolls-Royce Executive Vice President, Structures and Transmissions. "Our aim is to meet the requirements of our customers, both aircraft-makers and airlines, by giving them outstanding, cost-competitive products."
Hélène Moreau-Leroy, Chairman and CEO of Hispano-Suiza, added: "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 programs. It will also provide exciting new opportunities for our employees."
Subject to approval of this agreement by the regulatory authorities, the joint venture will start operation in early 2015.
Rolls-Royce Holdings plc
Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Land & Sea. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear & Energy and Power Systems (RRPS). On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers. Rolls-Royce employs over 55,000 people in 45 countries. For more information: www.rolls-royce.com
Hispano-Suiza (Safran) is a globally-recognized specialist in power transmissions on civil, military and helicopter markets. Hispano-Suiza designs, develops, produces and supports power transmissions which deliver mechanical energy to engine accessories or aircraft systems. It is the world's leading supplier of engine power transmissions, with a market share of nearly 60% of all mainline jets (over 100 seats) and an installed base covering more than 30,000 engines worldwide. Hispano-Suiza invests heavily in R&D to develop innovative power transmissions for tomorrow's engines, including the Rolls-Royce Trent XWB and the CFM International LEAP. For more information : www.hispano-suiza-sa.com.