Rolls-Royce activity in Singapore will contribute S$1.5 billion annually to local economy by 2015
Thursday, 17 June 2010
Rolls-Royce, the global power systems company, has today published research which shows that by 2015 its activities in Singapore will sustain nearly 25,000 local jobs and contribute more than S$1.5 billion – approximately .5% of GDP – to Singapore’s economy*.
The growth of the Group’s economic impact in Singapore will largely result from significant investment at the Seletar Aerospace Park. In 2009, Singapore was chosen by Rolls-Royce as the location for a new facility to manufacture state of the art Wide Chord Fan Blades, a technology which has played a key role in the success of the Trent engine family. This follows the decision in 2007 to build a new facility in Singapore to assemble and test large civil engines, starting with the Trent 1000 for the Boeing 787. Construction of the Rolls-Royce Seletar campus, which will include the Advanced Technology Centre and a regional training centre, began earlier this year and total investment will exceed S$700m and create 500 new, highly skilled jobs.
“Rolls-Royce has a very strong partnership with Singapore spanning more than 50 years and we are investing significantly to grow our presence here. We undertook this research to better quantify the effect that our local activities have had as an engine for economic growth,” said Jonathan Asherson, Rolls-Royce, Regional Director South East Asia. “This study verifies that we have had a substantially positive impact in many high value areas that are important to Singapore, including the development of skills and cutting edge technology. We look forward to continuing to grow and develop as an important part of Singapore’s national economy over the long term.”
The research findings stem from an economic impact study carried out by independent Singapore-based research company, Blackbox Research, in association with Professor Li Zhi-Feng from Nanyang Technological University.
The research demonstrates that in 2008, Rolls-Royce contributed over S$750 million in value-added output to Singapore, and sustained more than 10,000 jobs throughout the economy with wages and salaries totalling in excess of S$300 million. The company’s operations also resulted in a positive net foreign exchange of more than S$550 million to the economy. The key drivers to these contributions were investments, such as the Rolls-Royce Seletar Campus, and strong business performance from the successful maintenance, repair and overhaul joint ventures with Singapore Airlines Engineering Company, SAESL and IECO. Solid growth in the marine and energy businesses, and preference for local suppliers across its business units were also positive factors.
*The Singapore economy is expected to grow at a CAGR of 3.79% to S$334 billion by 2015 as projected by the Economic Intelligence Unit. The jobs Rolls-Royce will support are through both direct and indirect employment.
- 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.
- 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.
- Rolls-Royce employs 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.
- 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.
- 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 £58.3 billion at 31 December 2009, providing visibility of future levels of activity.
- Singapore is a key business hub for the Group. It is home to the global headquarters of the Group’s Marine business and the regional headquarters of its Asian Energy business. The Group’s Advanced Technology Centre and Procurement office is also located in Singapore and handles the management of suppliers in South Korea, Taiwan, Malaysia, India and South East Asia.
- Rolls-Royce has established a number of highly successful joint venture partnerships in Singapore, primarily with Singapore Airlines Engineering Company Limited (SIAEC). These include Singapore Aero Engine Services Limited (SAESL) and International Engine Components Overhaul (IECO), both of which provide services to major regional and global carriers.
- In February 2010, Rolls-Royce commenced construction of its 154,000 square metre (over 1.65 million square foot) Seletar Campus located at Singapore’s Seletar Aerospace Park.
- The Rolls-Royce Seletar campus will comprise a Trent aero engine assembly and test facility, a wide chord fan blade (WCFB) manufacturing facility as well as a regional training centre and Advanced Technology Centre (ATC), an integral part of the Rolls-Royce global network for technology research. The new factory will be the first outside the UK to manufacture Rolls-Royce hollow titanium WCFBs, a technology which has played a key role in the success of the Trent engine family.