14 August 2008
ROLLS-ROYCE AND GOODRICH PROPOSE
ENGINE CONTROLS JOINT VENTURE
Rolls-Royce plc and Goodrich Corporation announced today that they have signed
a Letter of Intent proposing the formation of a joint venture company, which
would develop and supply engine controls for Rolls-Royce aero engines.
If the proposed joint venture goes ahead, it would enable the two companies to
integrate their engine controls activity more closely. It would combine
Goodrich's existing UK-based engine controls design and manufacturing business
and Rolls-Royce's expertise in the integration of controls into the engine.
Goodrich would retain the aftermarket products and services business associated
with the joint venture's products.
Under the proposals, each of the contributing companies would own 50 per cent
of the joint venture company. Both companies will begin discussions with
employee representatives on proposed timescales for consultation.
Colin Smith, Director - Engineering & Technology, Rolls-Royce plc said: "This
proposed joint venture would allow us to align our activities more closely, and
reflects the importance we attach to the engine control system in optimising
engine performance."
Curtis Reusser, Segment President, Electronics Systems, Goodrich said: "This
arrangement would bring benefits to both our companies. Goodrich already works
closely with Rolls-Royce and we believe closer integration would provide an
even more efficient delivery of these important engine control systems."
Notes to editors
1. Goodrich's UK-based controls design and manufacturing is based in
Birmingham and Belfast, UK. Rolls-Royce aero controls engineers are based
in Bristol and Derby in the UK, Dahlewitz in Germany and Indianapolis in
the United States.
2. Around 1,100 UK-based Goodrich employees and 500 Rolls-Royce employees in
Europe and the US may transfer into the proposed joint venture.
3. Should it go ahead, the aim would be to complete the joint venture as soon
as possible, subject to regulatory review, consultation and approval which
is expected to take several months.
4. The engine control system ensures that the engine safely provides the
correct power in response to the pilot's demand. It does this by regulating
the flow of fuel to the engine and adjusts many other variable features,
which optimise the engine performance and ensure safety. The system also
provides data to the aircraft avionic systems and for cockpit indication.
It consists of electronic, hydraulic and mechanical components and depends
for its function on high integrity software.
5. 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, defence 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. For more information visit http://
www.rolls-royce.com.
6. Goodrich Corporation, a Fortune 500 company, is a global supplier of
systems and services to aerospace, defense and homeland security markets.
With one of the most strategically diversified portfolios of products in
the industry, Goodrich serves a global customer base with significant
worldwide manufacturing and service facilities. For more information visit
http://www.goodrich.com.
For further information, please contact:
Nicky Louth-Davies
Rolls-Royce plc
Director of Corporate Communications
Tel: +44(0) 207 227 9232
nicky.louth-davies@rolls-royce.com
Mark Alflatt
Rolls-Royce plc
Director of Financial Communications
Tel: +44(0)207 227 9241
mark.alflatt@rolls-royce.com
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