Page 6 - World Airnews Magazine January 2021 Intro

NEWS

ROLLS-ROYCE REVIEW

“The impact and pain of the pandemic on commercial aviation customers, forecast
civil aerospace is not only being felt by our to last several years, our manufacturing
olls-Royce has proposed an colleagues in the UK. We have already an- capacity and cost base must be reduced to
Rincrease to the scope of a leading nounced proposals to unfortunately reduce protect our remaining workforce.

aircraft engine and components company our civil aerospace workforce in Germany “ITP Aero offers a more cost competitive

ITP Aero’s supply chain activity, engineer- by almost a quarter due to the reduc- option than our existing structures facility

ing and manufacturing capabilities after a tion in demand from customers, while in in Barnoldswick, UK. We are commencing

full review of the company’s civil aero- Singapore several hundred jobs have been consultation on a proposal to close the
space situation. impacted as part of our global restructuring structures facility on the site. While this will

be hugely upsetting news for our colleagues

and we are consolidating the assembly and

“Since the beginning of the pandemic we testing of our widebody engines into the in Barnoldswick, this does not mean we are

have taken swift action to protect our busi- UK. We have also announced the closure of closing our Barnoldswick site.

ness by both reducing our spending and a whole civil aerospace manufacturing site

costs, and by raising additional funds,” said in the US, which is less than a decade old, Barnoldswick will be the home of a prod-
Chris Cholerton, president Civil Aerospace. and the work it used to carry out will now uct development and technical support
centre for wide chord fan blades and con-
“But despite the prospect that business be done in the UK.” tinue to manufacture blades for a range of

will eventually return to normal, sparked by “The actions we are proposing will defence and civil aerospace applications.

recent news of vaccines, the pandemic has enhance the position of ITP Aero, currently Other proposals include:

created a once-in-a-generation shock to wholly-owned by Rolls-Royce, as a major

the whole of commercial aviation and it is global aerospace company that will, in fu- • At Inchinnan, Scotland, the objec-

going to take years to recover. By complet- ture, be able to compete for business from tive to continue the manufacture
ing the restructuring of our civil aerospace other players in the aerospace industry and of aero-engine turbine blades and
business we can emerge as a stronger, target new opportunities,” the company compressors aerofoils in their facility

more efficient and sustainable business said in a statement. there is under discussion. The compa-

able to tackle some of the world’s toughest In May last year Rolls Royce announced ny is consulting with the trade union

technological challenges.” a major restructuring, predominantly of to make the site more competitive,

“The proposals we are laying out will their civil aerospace business, to achieve reduce operating costs and define the

provide an opportunity for our workforce total annual pre-tax cash savings of at least medium-term direction for the site.
in Hucknall to benefit from being part of an £1.3bn by the end of 2022. • In Ansty, UK, the company stated

enlarged global aerospace leader that can Further proposals from this extensive their objective is to continue the
compete for business with other engine review have emerged. These include the manufacture of aero-engine fan cas-
manufacturers. But I understand that the transfer of the facility and workforce in es at the facility there and talks have
announcement will be hugely upsetting Hucknall, UK into ITP Aero. begun with the trade union about

for our colleagues in Barnoldswick. This is different options.

a very difficult proposal to make, but we As part of ITP Aero, the Hucknall site will, • A number of potential disposals are

cannot afford to retain every Rolls-Royce in future, have the potential to unlock new expected to generate proceeds of

factory that was supported by demand that growth and investment opportunities, the more than £2bn in order to strength-

has been dramatically reduced by the pan- company said. en the company’s balance sheet, and
demic. No government support scheme can Secondly Rolls Royce have announced these include ITP Aero.

replace sustainable customer demand and the consolidation of the manufacture of Any impact on jobs is included within
no government can sign-up to extending aero-engine structures into ITP Aero. the figure of at least 9,000, across Rolls-

the sort of short-term measures we have “Due to the significant reduction in global Royce, announced in the restructuring in

been very grateful for, over multiple years.” demand for our products and services from May 2020. Q
World Airnews | January 2021
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