Rolls-Royce restructures Trent after-market joint ventures
Rolls-Royce has spent $206.5m (£136m) to restructure its jointly owned approved maintenance centres (AMCs) responsible for maintenance, repair and overhaul work on its Trent engines.
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The company has increased its stake in two joint ventures, Hong Kong Aero Engine Services Ltd (HAESL) and Singapore Aero Engine Services Ltd (SAESL), to take them to a 50-50 ownership structure.
A new, "more competitive" business model will be forced upon HAESL and SAESL, as well as the N3 Engine Overhaul Services 50-50 joint venture with Lufthansa Technik, that will require each AMC to compete against each other to secure their Trent TotalCare engine overhaul contracts.
Rolls-Royce said it believed this competitive model will "encourage greater capability and flexibility" across the Trent service network. The AMCs are also able to compete globally for MRO services under "time and material" business terms.
Eric Schulz, president of Rolls-Royce's civil large engines segment, said: "This announcement demonstrates our determination to work closely with our joint venture partners to build an even more competitive, capable and flexible Trent Service Network and to further improve our TotalCare services for our customers. The joint venture shareholding changes will also help to simplify our business."