Rolls-Royce signs agreement with STX Engine Company to further strengthen position in Asia

Wednesday, 27 October 2010

Rolls-Royce, the global power systems company, has signed an agreement with STX Engine Co. Ltd.  STX Engine, based in Korea, will become a packager of Rolls-Royce industrial gas turbine generating sets in the Asia Pacific region.

The agreement provides an enhanced route to market for the latest Rolls-Royce industrial gas turbine, the RB211-H63, which the Group announced in June, as well as the most powerful engine in its range, the Trent 60 gas turbine.

Commenting on the new agreement, Charles Athanasia, Rolls-Royce Executive Vice-President of Power Generation - Energy said: “This agreement will enable Rolls-Royce to better serve the growing demand for electrical power generation technology and will further strengthen our position in important Asian markets.

“With this agreement STX will have the capability to market, package and install two of the world’s most efficient industrial gas turbines in a power range from 27MW to 64MW in countries such as Bangladesh, Philippines, Taiwan, Vietnam and also Korea”.

Mr. Dong-Hak Chung, President and Chief Executive Officer of STX Engine added, “This is a further strengthening of an already strong relationship between our two companies. We have had a customer/supplier relationship with Rolls-Royce for over ten years and in that time the resulting sales of Marine equipment have been in excess of £1 billion.

“Our experience in selling diesel and gas engine-powered electrical power plants to the Asian power generation market will provide a significant sales channel for Rolls-Royce gas turbines.”

In addition to providing increased exposure in Asia, under the agreement, STX will also join with Rolls-Royce in the development of the package design.

Rolls-Royce will supply the RB211-H63 gas generator, its RT63 power turbine and the Trent gas generator from its facilities in the USA and Canada, and will also be responsible for supporting the engines in the field. 

Both types of packages will be assembled by STX at their Changwon engine facility in South Korea.

About Rolls-Royce:

  1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
  2. As a result of this strategy, Rolls-Royce today has a broad customer base comprising more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines.
  3. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing and service facilities in 50 countries. The Group has a strong commitment to apprentice and graduate recruitment, and to further developing employee skills.
  4. In 2009, Rolls-Royce invested £864 million 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. Annual underlying revenues were £10.1 billion in 2009, of which about half came from services revenues.  The firm and announced order book stood at £58.4 billion at 30 June 2010, providing visibility of future levels of activity.
  6. The most powerful and efficient industrial engine in the Rolls-Royce product range is the Trent 60 gas turbine. It contains a high degree of commonality with its aero parent, benefiting from the three-shaft technology, a concept unique to Rolls-Royce.
  7. The RB211-H63 integrates the reliability and ruggedness of current RB211 gas turbines with the proven technology from Trent aero engines to create the next evolution in the industrial RB211 gas turbine family.  At 44MW, the RB211-H63 will deliver at least 30% more power, more efficiently than earlier RB211 models.

About STX:

  1. STX Business Group is one of the biggest Korean enterprises by maximising synergy among its affiliates in four business sectors: Shipbuilding & Machinery, Shipping & Trading, Plant & Construction, and Energy. Based on approximately 140 global networks, STX is making 90 per cent of its total sales from overseas. Also, by global production bases connecting Europe, Korea and China, STX has consolidated its position as the world’s major shipbuilder with 18 shipyards in eight different countries.
  2. Annual revenues were US Dollar 21 Billion in 2009.
  3. STX Business Group consists of 11 affiliates including STX Corporation (the holding company), STX Pan Ocean, STX Offshore & Shipbuilding, STX Europe, STX Dalian, STX Engine, STX Heavy Industries, STX Metal, STX Construction, STX Energy, and STX Solar.
  4. STX Engine is a diesel manufacturer achieving 70~80 per cent of its sales overseas. The company is reinforcing its capabilities by advancing new businesses, including gas turbines and environmentally-friendly business, as well as marine, military, generator engines. It also develops its own radars and sonar systems for naval vessels as well as advanced defense equipment and voyage data recorder.

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