Rolls-Royce expands US capability; begins construction on new manufacturing facility in Virginia
Monday, 19 October 2009
Prince George County, VA - Rolls-Royce, the global power systems company, has begun construction at Crosspointe, its new aerospace facility in Prince George County, Virginia. Crosspointe is the first Rolls-Royce manufacturing facility built from-the-ground-up in the US. Located on over 1,000 acres, it is the largest Rolls-Royce site by area in North America with ample space to accommodate suppliers' and partners’ co-location in the future.
Initial Rolls-Royce investment in this site is $170 million. Over time, the company anticipates total investment of approximately $500 million in Virginia. The first phase of work will support roughly 140 jobs; the company expects future growth in Virginia to generate some 500 jobs in the coming years.
“Rolls-Royce is investing in America,” said James M. Guyette, President & CEO, Rolls-Royce North America. “This is a historic day for us as we begin construction on our first manufacturing facility built from-the-ground-up in the US. Crosspointe will be a flagship operation for Rolls-Royce, and the significant investment we are making here will enhance our competitiveness in global markets and position us for future growth.”
The Crosspointe campus will accommodate the Commonwealth Center of Advanced Manufacturing (CCAM), a unique higher education partnership founded by the Commonwealth of Virginia, the University of Virginia, Virginia Tech, Rolls-Royce and other partners. The vision for CCAM is to become a world-class research facility delivering a step change in design and manufacturing technologies. In addition, the Commonwealth Center for Aerospace Propulsion Systems (CCAPS), a virtual research and technology center of excellence established by the same partners, creates a framework in which to tackle the technology challenges of today and tomorrow and is also closely linked to Crosspointe and CCAM and shares the same collaborative vision.
“This site would not be possible without the support of the Commonwealth of Virginia, the University of Virginia, Virginia Tech and Prince George County. We’re delighted to be bringing so many good, high-tech and advanced manufacturing jobs to the region and look forward to building on our presence in and partnership with Virginia,” continued Guyette.
“Today marks the beginning of an exciting future for Virginia,” said Virginia Governor Timothy M. Kaine. “In addition to the hundreds of quality jobs that Rolls-Royce will create in the short-term, this transformational project will bring international focus to Virginia’s aerospace industry and promises economic benefit to the Commonwealth for decades to come.”
The company marked the start of construction today with a celebration on site, attended by the project’s founding partners:
- The Honorable Timothy M. Kaine, Governor of Virginia;
- Dr. Charles W. Steger, President, Virginia Tech;
- Leonard W. Sandridge, Executive Vice President & Chief Operating Officer, the University of Virginia;
- Henry Parker, Chairman, Prince George County Board of Supervisors; and
- James M. Guyette, President & CEO, Rolls-Royce North America Inc.
The celebration also showcased several Rolls-Royce products.
At Crosspointe, Rolls-Royce will manufacture, assemble and test a range of aerospace components and products. The first building on site 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. Disc production at Crosspointe will begin as soon as the site is operational, currently expected in early 2011.
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.
“For us, Crosspointe is about growth -- about positioning for the future. With this new campus in the US, we are spreading our capability around the world, getting closer to our customers, growing our presence in key markets and strengthening our ability to manage business continuity risk,” added Guyette.
- 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.
- 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.
- 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.
- 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.
- Rolls-Royce currently has a network of manufacturing capability spread across several countries including the UK, US and Germany.
- 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.
- The start of construction caps 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 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 through the site will be completed shortly.
- In addition to Crosspointe, Rolls-Royce has invested in three new sites in the US this year: an On-Wing Care facility in Indiana serving the Corporate and Regional aircraft markets, and Marine Service Centers in Texas and Washington state. The company has also made significant investments to enhance or upgrade manufacturing facilities in Indiana and Ohio.
*USD values have been estimated using an average exchange rate of £1~$1.65