New Factory

Rolls-Royce PLC
22 April 2002

                                                                  April 22, 2002



                  ROLLS-ROYCE TO BUILD NEW FACTORY IN SCOTLAND


Rolls-Royce plc is to replace its existing factory at Hillington, near Glasgow,
with a new facility in the West of Scotland. A number of sites are being
considered and a choice will be made by the end of May.


This decision follows a review, announced last November, and will safeguard up
to 1,000 jobs in the West of Scotland. Hillington is an old factory dating back
to the 1940s and is in need of substantial investment. A new factory on a
greenfield site will lead to a substantial reduction in overhead costs,
improvements in productivity and will secure employment for the future.


The new factory will cover 50,000 sq. m. and will incorporate state-of-the-art
production facilities. It will be laid out according to latest manufacturing
thinking to allow the best possible flow from the arrival of raw material to the
despatch of finished components.


Construction of the new facility will begin this summer and the project will
take three years to complete. The transfer of the work from Hillington will
begin in spring 2003 and will be completed by the summer of 2005. The total cost
of the new factory and the transfer of work will be around £85 million.


Royan Anthony, Managing Director - Compressor Systems, for Rolls-Royce, said: 
'This £85 million project is a demonstration of the company's commitment to
Scotland and a tribute to the skills, experience and commitment of our workforce
at Hillington. We will create a world-class Centre of Excellence for aerospace
component manufacture at the new site.


'Hillington is an old plant and it is not suitable for the modern manufacturing
systems we need to employ to remain competitive. We looked at a number of
alternative locations for a new facility, including some overseas. The skills,
experience and commitment of our Scottish workforce were important factors in
our decision to remain here.'


Once the transition to the new factory has been completed, Rolls-Royce will
leave the Hillington facility.


The Compressor Systems business of Rolls-Royce manufactures components which go
into the majority of the company's gas turbines which are used in the civil
aerospace, defence, marine and energy markets.


For further information, please contact:


Martin Brodie
Head of Corporate Media Relations
Rolls-Royce plc
Tel:  [phone]
Fax: [phone]
e-mail: [e-mail]


                      This information is provided by RNS
            The company news service from the London Stock Exchange