Rolls-Royce and Hispano-Suiza finalise joint venture
The new company will capitalise on its parent companies' combined experience and expertise, encompassing the design and production of accessory drive transmissions by Hispano-Suiza, and engine design and propulsion system integration by Rolls-Royce.
Based on an initial exclusive 25-year contract, the joint company will cover the entire range of civil aircraft, from business jets to widebody commercial jets. In particular, it will contribute to the Airbus A330neo, a new aircraft for which Rolls-Royce won the engine contract in July 2014 with its Trent 7000.
The new joint venture company will be headquartered at Hispano-Suiza's site in Colombes, in the greater Paris area, and will also operate at Rolls-Royce's facilities in Derby (United Kingdom) and in Dahlewitz (Germany).
A production plant will be built in a competitive country starting in 2015, with the aim of starting operations in late 2016 or early 2017. The joint venture company will initially total about 180 employees, including staff from its parent companies.
"With each parent company contributing its world-class skills to this joint venture, we have taken a major step forward in performance," said Norbert Arndt, Rolls-Royce Executive Vice President, Structures and Transmissions. "Our aim is to meet the requirements of our customers, both aircraft-makers and airlines, by giving them outstanding, cost-competitive products."
Hélène Moreau-Leroy, Chairman and CEO of Hispano-Suiza, added: "For both Rolls-Royce and Hispano-Suiza, the creation of this joint venture marks a major step towards the consolidation of our historical relationship within a long-term partnership, and enables us to stake out a position on new aircraft programmes. It will also provide exciting new opportunities for our employees."
Subject to approval of this agreement by the regulatory authorities, the joint venture will start operation in early 2015.
