Rolls-Royce to invest $600 million to modernize its manufacturing operations in Indianapolis

Rolls-Royce team member Richard Wilson prepares Rolls-Royce’s AE 3007 jet engine for testing at the company’s manufacturing facilities in Indianapolis

Indianapolis, Ind., 6-10-2015 — /EuropaWire/ — Today (5 October 2015), Rolls-Royce announced the company will invest nearly $600 million to modernize its manufacturing operations in Indianapolis and to conduct technology research, ensuring that Indiana remains a leader in the aerospace industry for decades to come.

The modernization plan will enable the company to become more competitive by replacing outdated facilities and accelerating the introduction of new and advanced manufacturing methods. The investment was made possible by the State of Indiana, the City of Indianapolis and the United Auto Workers (UAW) union. Rolls-Royce produces engines for a wide range of military and commercial aircraft, as well as marine propulsion systems.

This investment – the largest by Rolls-Royce in the United States since the company bought the former Allison Engine Company in 1995 – will include a major renovation of the existing facilities at Tibbs Avenue and Raymond Street.  Upgrades will include new manufacturing and assembly operations that will match the advanced standards already present in many otherRolls-Royce facilities in Indiana and around the world. The five-year modernization plan, which is in-line with the Group’s ongoing investment plans, will also consolidate operations and significantly reduce utility costs.

“Our new facility will be a state-of-the-art manufacturing center that combines modern production systems and machinery with a highly skilled workforce. This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce,” said Marion Blakey, President and CEO, Rolls-Royce North America.

“We want to express our sincere appreciation to the State of Indiana, the City of Indianapolis, the UAW, and our employees for helping us make this investment in our future possible,” said Phil Burkholder, President of Rolls-Royce Defense Aerospace, North America.

“Indiana leads the nation in advanced manufacturing, and Rolls-Royce has been an integral part of our state’s industry for the past 100 years,” said Indiana Governor Mike Pence. “As the company evaluates its future and looks to remain competitive across the globe,Rolls-Royce is choosing the State of Indiana for this investment because we offer the business-friendly climate needed to succeed. Today’s news is evidence that Indiana is a state that works for business, and it signifies the company’s commitment to our state and to Hoosiers for years to come.”

“Indianapolis has emerged as a global competitor in technology and advanced manufacturing, and Rolls-Royce has played an important role in that growth,” said Indianapolis Mayor Greg Ballard. “This is an internationally-renowned company that could have chosen to invest anywhere on the map, and I am very proud that they selected Indianapolis. I look forward to our community’s continued partnership with Rolls-Royce as they engage our talented workforce and use their upgraded facility to raise the bar in aerospace technology.”

“During our long relationship with Rolls-Royce, the UAW has always been committed to being part of the solution for our next century of innovation at our manufacturing operations. This investment, coupled with the most skillful women and men in the world, enables us to be competitive on a global level for decades to come,” said Frank Poynter, Bargaining Unit Chairman, UAW Local 933, Indianapolis.

As part of the agreement to make the investment, Rolls-Royce will receive approximately $35 million in State and City incentives.  They include conditional tax credits and a skills enhancement grant through the Indiana Economic Development Corporation (IEDC), both of which have been approved by the IEDC Board of Directors.  Rolls-Royce and the City have agreed in principle to amend Rolls-Royce’s existing real and personal property tax abatement agreement, and final approval is pending before the Metropolitan Development Commission. All of these incentives apply to the facility investment and technology development that will be incorporated into future Rolls-Royce products.

Renovation of the existing buildings will begin immediately.  Special project teams are implementing modernization plans while continuing to support our global customer base.

About Rolls-Royce in Indiana
For 100 years, Rolls-Royce and its predecessor companies have been engineering, designing and manufacturing advanced technology in the city of Indianapolis.  Today,Rolls-Royce employs 4,000 people in Indianapolis, with 1,050 working in production and nearly 1,400 engineers.  Economic modeling studies show that aerospace and advanced manufacturing are highly beneficial to local economies, with data showing for every one person employed directly, another two jobs are created in the community – the multiplier effect.

Engines designed, assembled and tested at Rolls-Royce in Indianapolis power U.S. Department of Defense aircraft, civil helicopters, regional and business jets, and power systems for U.S. Naval vessels.  These include the F-35B Lightning II; C-130J Super Hercules; V-22 Osprey; Global Hawk and Triton UAVs; various commercial helicopters and the new naval Ship-to-Shore Connector program. Rolls-Royce also operates an advanced aerospace technology research and design unit in Indianapolis, which is known as LibertyWorks.

About Rolls-Royce Holdings plc

  1. Rolls-Royce’s vision is to create better power for a changing world via two main business divisions, Aerospace and Land & Sea. These business divisions address markets with two strong technology platforms, gas turbines and reciprocating engines. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear and Power Systems.
  2. 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 more than 5,000 power and nuclear customers.
  3. 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.
  4. Annual underlying revenue was £14.6 billion in 2014, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £76.5 billion at 30 June 2015.
  5. In 2014, Rolls-Royce invested £1.2 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.
  6. Rolls-Royce employs over 54,000 people in more than 50 countries. Over 15,500 of these are engineers.
  7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2014 we employed 354 graduates and 357 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.
Corporate communications
Richard Wray
Director of External Communications
Tel +44 (0)2072279163
Mobile +44 (0)7974918416
richard.wray@rolls-royce.com
Sarah Roberts
External Communications Manager
Mobile +44 (0)7968906469
sarah.roberts2@rolls-royce.com

SOURCE: Rolls-Royce plc

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Rolls-Royce to invest $600 million to modernize its manufacturing operations in Indianapolis

Rolls-Royce to invest $600 million to modernize its manufacturing operations in Indianapolis

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