Rolls-Royce to set up repair facilities in Asia

Rolls-Royce to set up repair facilities in Asia

SINGAPORE (Reuter): Aero-engine maker Rolls-Royce Plc's venture with Singapore Airlines (SIA) to set up repair and overhaul operations will enhance its position in fast-growing Asia, company officials said yesterday.

"We have a very strong position in this part of the world, particularly southern Asia. Singapore's selection enhanced that dramatically," Ian Lloyd, managing director of Rolls-Royce Aero Engine Services Ltd said at the signing ceremony.

RRAESL, a unit of Rolls-Royce, set up a joint venture company, International Engine Component Overhaul Pte Ltd (IECO), with SIA subsidiary SIA Engineering Co Pte Ltd.

Jones said Rolls-Royce was supplying Trent engines to SIA, Thai International, Garuda, Malaysian Airlines and Cathay Pacific.

It was a rational step to have a repair and overhaul outfit to serve a growing customer base in the region, Jones said.

Initially, IECO will be involved in the repair of nozzle guide vanes and compressor stators of Rolls-Royce RB 211 and Trent aero-engines and other aircraft components.

SIA has 30 Boeing 777s on firm order and another 31 aircraft on option. The fleet will be powered by the Trent 800 engines.

The airline has previously opted for Pratt & Whitney engines for most of its fleet of 80 aircraft.

Company officials said Rolls-Royce has a 26 to 27 percent marketshare of airplane engines worldwide.

"Our current order book shows we have US$11 billion in deliveries and 25 percent is from the Asia-Pacific," Jones said.

Sales of Boeing's 777 has also boosted demand for Trent engines, as almost every customer purchasing the 777 series has opted for the engine, he said.

But no decision has been made on what engines would be used on five 777s purchased by Air China this week, Lloyd said.

"Historically, whenever Rolls-Royce has been available, we've achieved 33 percent. We do well," he said.

Rolls-Royce, which builds power generators and is involved in materials handling and port development, said it hoped to negotiate other ventures in Singapore and the region.

IECO has an authorized capital of US$20 million and a paid-up capital of US$15.5 million.

Lloyds said revenues should reach $15 million a year when operational, but declined to be specific.