Rolls-Royce to begin construction in Virginia

Friday, 28 August 2009

Rolls-Royce, the global power systems company, is ready to begin construction at Crosspointe, its new aerospace facility in Prince George County, Virginia. Following a rigorous and competitive selection process, the company has selected the design-build firm of Haskell to undertake construction of the first building on site.

This first building at Crosspointe will be a 140,000 square foot disc manufacturing facility. Discs, the part of a turbofan engine that contains the blades, are considered one of the most critical components of the engine. Discs manufactured at Crosspointe will be used in some of the company's newest civil aerospace products - the Trent 1000, Trent 900 and Trent XWB - optimized for the Boeing 787, Airbus A380 and A350 XWB respectively. Construction on this facility is expected to begin in late September or early October.

This initial phase of work - disc manufacturing - will support roughly 140 jobs. Disc production at Crosspointe will begin as soon as possible once the site is operational, currently expected in the fourth quarter of 2010.

Tom Loehr, Rolls-Royce Executive Vice President, Crosspointe said: "Our improving market position and significant growth in the past few years have delivered a record order book. Despite these challenging economic times, we are confident in our long-term growth and determined to maximize the opportunities provided by our technologies, people and global reach. Thanks to our partners, the Commonwealth of Virginia, Prince George County, the University of Virginia and Virginia Tech, Crosspointe will be a world-class aerospace facility and will play a key role in our future. We're delighted to be growing our footprint in Virginia and bringing the economic benefits associated with high value added manufacturing to the region."

Plans are also proceeding for the second building on site - a blisk manufacturing facility. Blisks, or bladed discs, incorporating fan blades and discs into a single piece, are designed for use in the next generation of gas turbine engines. Blisks manufactured at Crosspointe will be used in the F136 engine for the Joint Strike Fighter, the world’s largest ever fighter program.

Crosspointe will be the largest Rolls-Royce site by area in North America, with ample space to accommodate suppliers' and partners' co-location in the future. It is also the first Rolls-Royce site built from-the-ground-up in the US.

  1. Rolls-Royce is a global business providing and supplying integrated power systems for use on land, at sea and in the air. The company has established strong positions in four global markets -- civil aerospace, defense aerospace, marine and energy.
  2. With facilities in 50 countries, Rolls-Royce employs around 38,000 people worldwide and has businesses headquartered in the UK, US, Canada, Germany, Scandinavia, Singapore, India and Brazil.
  3. In 2008, annual underlying revenues were £9.1 billion (approximately US$15 billion*) of which 52 per cent came from services revenues. The firm and announced order book at the end of June 2009 stood at £57.5 billion (approximately US$95 billion), providing visibility of future levels of activity.
  4. In 2008, Rolls-Royce and its partners invested £885 million (approximately US$1.5 billion) on research and development, two-thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.
  5. A significant and growing business in North America, Rolls-Royce employs nearly 8,000 people at more than 66 US locations in 26 states and seven sites in six Canadian provinces.
  6. Crosspointe will manufacture, assemble and test a range of aerospace components and products. The first phase of work – component manufacturing -- is likely to support over 140 jobs and the company expects future growth in Virginia to generate roughly 500 new jobs in the coming years. Initial Rolls-Royce investment in this site will exceed $100 million. Over time, the company anticipates additional investment of up to $500 million in Virginia.
  7. Haskell provides complete planning, architectural, engineering, construction, program management, real estate, financing and facility management services on a single-responsibility basis. The company’s expertise spans industrial, commercial, institutional, public and civil infrastructure projects. Founded over 40 years ago, the company ranks among the foremost design-build organizations in the US.
  8. Today's announcement is just the latest in a series of important steps Rolls-Royce has taken to advance development at Crosspointe. To date, the company has invested several million dollars to establish and maintain operations in support of Crosspointe. There is a Rolls-Royce office in Petersburg, Virginia, very near the new site. More than 30 Rolls-Royce employees are working full-time on this project and recruiting is underway locally in Virginia and around the world to fill critical manufacturing engineer and other roles. In December 2008, Rolls-Royce assumed the title to the land. Clearing and grading of the first 60 acre parcel is complete, zoning and air permits are in place and the principal road allowing access to the site will be ready shortly.
  9. Currently, Rolls-Royce produces discs at a single facility in Sunderland, UK. In recent years, the company has invested £6.5 million (approximately US$10 million) in the Sunderland plant and announced plans to invest an additional £9.5 million (approximately US$16 million) over the next three years. This investment will be used to renew infrastructure and equipment at Sunderland.
*USD values have been estimated using an average exchange rate of £1~$1.65

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