Rolls-Royce Strikes $1 Billion Deal
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowRolls-Royce in Indianapolis will be a major beneficiary of a $1 billion deal by its parent company. The agreement involves military aircraft engines that will be manufactured, assembled and tested at the Marion County operations. February 12, 2014
News Release
Rolls-Royce has completed a long-term agreement with Lockheed Martin worth up to US$1 billion to deliver approximately 600 engines to power future C-130J Super Hercules aircraft.
The agreement secures the Rolls-Royce AE 2100 as the engine of choice for all variants of the C-130J to 2025. The engine agreement will service US Government and International contract requirements between 2014 and 2018.
The AE 2100 powers all C-130Js, while the Rolls-Royce T56 engines power the legacy C-130 fleet. The global C-130J fleet has surpassed 1 million flight hours, and Lockheed Martin recently announced its intent to obtain certification from the Federal Aviation Administration for a new civil variant – the LM-100J.
Tom Bell, Rolls-Royce, President Defense, said, “Lockheed Martin and Rolls-Royce have partnered for decades to produce thousands of the world's leading medium transport aircraft. Our new engine agreement secures that relationship for years to come, enabling operators to continue to enjoy the versatile, powerful and fuel efficient aircraft they have come to appreciate through 1 million flight hours and counting.”
George Shultz, Lockheed Martin, Vice President and General Manager, C-130 Programs, said, “This agreement is a very important step in providing our customers the most affordable airlifter in the world. The C-130J Super Hercules has proven the 'value of the power' as the Rolls-Royce AE 2100 propulsion system allows the Super Hercules to perform any mission, anywhere, any time.”
The agreement will ensure the continued success of the versatile and proven C-130J military transport aircraft and its powerful, reliable and fuel-efficient turboprop engines. More than 300 of the four-engine transports have been delivered to customers in 16 countries, across 16 different mission types.
Rolls-Royce has already delivered more than 1,500 AE 2100 engines to Lockheed Martin’s Marietta, Ga., facility. AE 2100 engines are manufactured, assembled and tested in Indianapolis, US.
Notes:
1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets – civil aerospace, defence aerospace, marine and energy.
2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 300 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries.
3. Annual underlying revenue was ?12.2 billion in 2012, of which more than half came from the provision of services. The firm and announced order book stood at ?69.2 billion at 30 June 2013, providing visibility of future levels of activity.
4. Rolls-Royce employs over 45,000 people in offices, manufacturing and service facilities in 45 countries. Over 14,000 of these employees are engineers.
5. In 2012, Rolls-Royce invested ?919 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions.
6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company’s engineers with the forefront of scientific research.
7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
About Lockheed Martin:
Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs approximately 115,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s net sales for 2013 were $45.4 billion.
Source: Rolls-Royce