11 November 2014
ROLLS-ROYCE SIGNS LONG-TERM CONTRACT FOR M250 TURBOPROP ENGINES
WITH JIANGSU A-STAR OF CHINA
Rolls-Royce and Jiangsu A-Star have signed a new, long-term agreement for M250 turboprop engines as the Chinese company prepares its production line for the manufacture of Extra EA 500 aircraft.
The agreement includes orders for Rolls-Royce M250-B17F engines, with hundreds of engines expected to be delivered over coming years, primarily in aircraft for the fast-growing Chinese general aviation market. Jiangsu A-Star recently purchased the Type Certificate for the Extra EA-500 aircraft and has developed production facilities in Zhenjiang, Jiangsu Province, near Shanghai. Engines for the aircraft will be assembled at Rolls-Royce facilities in Indianapolis, US, and shipped to Zhenjiang for installation in the aircraft, with deliveries beginning in 2015. The agreement is valued in excess of $50 million US.
Rolls-Royce and Jiangsu A-Star are also in discussions on maintenance, repair and overhaul, and other new service capabilities to support the Chinese market, as well as training opportunities.
Jason Propes, Rolls-Royce, Senior Vice President, Civil Helicopters and Light Turboprop Engines, said, "Rolls-Royce is delighted to complete this long-term production agreement with Jiangsu A-Star for our reliable and proven M250 engines. This is the beginning of what we hope will be a long and productive working relationship between Rolls-Royce and Jiangsu A-Star."
Wang Hong Lu, Jiangsu A-Star, Vice President Operations, said, "EA-500 will be our starting point in the Chinese general aviation market. Jiangsu A-Star owns the Type Certificate and production rights of the composite EA-500. Together with our German design organization, we will continue our cooperation with Rolls-Royce, providing high-quality aircraft to customers, as well as efficient and affordable aftermarket service."
Jim Payton, Rolls-Royce, Vice President, Civil Helicopters and Light Turboprop Engines - China, said, "These are exciting times for the General Aviation market in China as the projections for turboprop aircraft are very strong. Rolls-Royce is well positioned for this market with our family of proven M250 turboprop engines."
The M250 is one of the most dependable light gas-turbine engines in the world for light turboprop aircraft and helicopters. The engine line has amassed over 225 million flight hours, with 15,000 engines in service around the world today. More than 100 aircraft types have been powered by the M250 engine over the past 50 years.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Land & Sea. These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines.
2. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear & Energy and Power Systems. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
4. Our business is focused on the 4Cs:
· Customer - placing the customer at the heart of our business
· Concentration - deciding where to grow and where not to
· Cost - continually looking to increase efficiency
· Cash - improving financial performance.
5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £70.4 billion at 30 June 2014.
6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes. Globally we have over 1,000 Rolls-Royce STEM ambassadors who are actively involved in education programmes and activities; we have set ourselves a target to reach 6 million people through our STEM outreach activities by 2020.
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Rolls-Royce plc
Tel: +44 (0)20 7227 9163
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www.Rolls-Royce.com
