RI: Rolls-Royce's fast growing market

RI: Rolls-Royce's fast growing market

DERBY, England (JP): Indonesia, as part of Asia, has emerged
as a fast growing market for both Rolls-Royce aero and industrial
engines.

Rolls-Royce has been very active in developing a consistent
and cooperative program with Indonesia in recognition of the
country's market potential. The abundant natural resources
Indonesia offers has prompted the British aero and industrial
engine maker to set up its marketing campaign.

"Our approach is based on long-term partnerships to establish
joint ventures and transfer technologies," said Gary Atkins,
press and publicity manager of Rolls-Royce's Aerospace Group.

Atkins briefed a group of Indonesian journalists during a
three-day visit to various Rolls-Royce facilities in England
recently.

"We are committed to the future of Indonesia, whose abundant
natural resources bring strong exports and stable currency. Rapid
industrialization and expansion give Rolls-Royce the opportunity
to be of service in many sectors," he said.

The relationship between Rolls-Royce and Indonesia has
progressively grown over the last 25 years. In civil aviation, it
started when the Rolls-Royce Dart turboprop engine powered
aircraft such as the HS748, Vickers Viscount and Fokker F27 which
were used by Indonesian airlines such as Merpati, Sempati, Bouraq
and Mandala. Garuda Indonesia took its first Rolls-Royce jet
engine when it began operating Spey-powered F28s in the late-
1970s. Garuda then ordered Rolls-Royce's Tay-engined F100s which
it transferred to Merpati, which currently have these aircraft in
service.

The scheduled arrival in Jakarta today of the new generation
big twin Rolls-Royce Trent-powered A330 marks a new hallmark in
Indonesia's improving relations with the British aero engine
maker.

The company is also busy lobbying Garuda for the use of Trent
800, the big brother of Trent 700 engines, for Boeing 777s being
ordered by the airline.

Rolls-Royce has also been cooperating with the state-owned
IPTN aircraft manufacturer and its Universal Maintenance Center
which maintains and repairs Dart engines and is qualified to
maintain Tay engines. The acquisition of the Allison Engine
Company by Rolls-Royce last year further strengthened this
connection as Allison's AE2100C engines power IPTN's N250 which
is now undergoing certification prior to entering into service.
Also, discussions are being held with IPTN about the suitability
of the BR700 engines (produced by Rolls-Royce-BMW joint venture)
as the power plant for the new N2130 regional jet.

Over the years Rolls-Royce has also built a strong
relationship with the Indonesian Air Force. The Rolls-Royce Adour
engine powers the 14 Hawk Mk53 trainer aircraft already in
service and the 40 Hawk 100s and 200s which are being delivered
over the next two years. Eighteen of the latest Hawks have
already arrived. The Air Force also operates a fleet of Hercules
C130 transport aircraft which are powered by Rolls-Royce Allison
T56 turboprop engines.

The Indonesian Navy's fleet of corvettes use the Olympus
marine engines.

The result of this scale of activity is that Rolls-Royce is
now the largest single aero engine supplier to Indonesia with
some 1,000 engines in service.

Industrial engines

Industrial engines derived and adapted from aero engines have
become another fast growing market for Rolls-Royce in Indonesia.

Robin Singleton, chief of Rolls-Royce International office in
Jakarta, told The Jakarta Post there are existing installations
in the Natuna and Bontang oil fields.

Rolls-Royce currently operates industrial gas turbines with
Conoco in the Natuna (South China Sea) field and with VICO in the
Bontang (East Kalimantan) LNG facility.

"Also, Rolls-Royce is keenly interested in the Natuna natural
gas field development which offers a range of opportunities for
the company and where up to 24 Trent industrial engines could be
required for pumping purposes," Singleton said.

Malcolm Bennet, marketing manager of Rolls-Royce Industrial
and Marine gas Turbines Limited, told the Post during a press
briefing at a Rolls-Royce facility in Barnoldswick, Lancashire,
recently that Rolls-Royce is prepared to join the bidding process
for the Natuna megaproject, which will reportedly be opened early
next year.

"We are interested in the development of a number of platforms
which could use some 24 Trent gas turbines," he said.

He said Rolls-Royce was participating in the current
configuration studies for the project and the company is planning
"PT Rolls-Royce Natuna" to act as a focal point to identify
Indonesian partners and to maximize local content.

According to him, industrial gas turbines which have high
power and high efficiency are ideal for offshore duty.

The Indonesian government will reportedly invite some 200
contractors to bid for a wide range of opportunities offered by
the project.

Rolls-Royce is currently building a US$90 million, 60-megawatt
combined cycle power plant for the state electricity company PT
PLN in Samarinda, the capital of East Kalimantan province, using
RB211 aeroderivative engines.

Bennet further said that besides the PLN project, Rolls-Royce
also has plans to construct a 130 MW combined cycle power station
in the East Kalimantan city, but on a private basis.

"We received a Letter of Preliminary Approval from the
Ministry of Mines and Energy last July," he said.

The private Samarinda project will use Trent gas turbines.

Rolls-Royce is determined to support all these activities with
promotional and information programs. Rolls-Royce was a major
exhibitor at this year's Indonesia Air Show and regularly
participates in other relevant events, such as oil and gas
exhibitions, power generation industry conferences and seminars.

To demonstrate its growing commitment to Asia, the company
also ran a major advertising campaign on ABN TV, in Asian Wall
Street Journal and regional business magazines this year. The
visit to its facilities in UK by selected Indonesian media and a
regular flow of media information are also part of its efforts to
keep the Indonesian market informed of Rolls-Royce developments.

The company opened its permanent office in Jakarta in 1990 and
has since expanded it steadily to become a constant point of
contact with Indonesian interests. The office is staffed by
specialists in civil aviation, military engines and industrial
power development. It also has product support staff in the field
working directly with civil and military engine customers.

An important part of Rolls-Royce Jakarta office's
responsibilities is market intelligence, by which means the
company seeks to identify potential projects for which it might
bid.

"Similarly, the growing awareness of Rolls-Royce's versatility
leads to approaches to bid being made directly to the company by
interested Indonesian parties. As a result, plans are in hand for
the formation of joint ventures with Indonesian partners for the
Natuna natural gas project and for other industrial power
sectors," Singleton said.

Rolls-Royce runs an on-going training program for engineering
staff involved in the maintenance, repair and overhaul of its
engines. Universal Maintenance Center personnel are currently in
place at the Allison engine plant in Indianapolis, U.S., and are
also given training at Rolls-Royce UK sites such as Derby and
east Kilbride, Scotland, where repair and overhaul facilities are
concentrated.

Rolls-Royce has consistently identified Asia as its key growth
market and the success throughout the region of its Trent 700/800
engines testifies to the success of this strategy. As well as the
Trent 700 on the Airbus A330, the Trent 800 has dominated the
Boeing 777 market in the region.

"With the growth in industrial power requirements for meeting
Asia's infrastructure needs, this market becomes even more
important. Hence, Rolls-Royce is constantly strengthening its
presence throughout the region," said Singleton.