BAESL, Rolls-Royce and Air China's Joint Venture MRO facility, breaks ground in Beijing, China

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BAESL, Rolls-Royce and Air China's Joint Venture MRO facility, breaks ground in Beijing, China

Rolls-Royce (LSE: RR., ADR: RYCEY) today announces it has broken ground on Beijing Aero Engine Services Company Limited (BAESL), its 50/50 joint venture (JV) maintenance, repair and overhaul (MRO) facility established with Air China, in Beijing, China. The ground-breaking ceremony marks a significant milestone for the MRO facility, which is expected to enter into operation in 2026.

Representatives from Rolls-Royce, Air China, British Embassy Beijing, Civil Aviation Administration of China (CAAC) and other stakeholders attended the ceremony.

The facility is being built on a greenfield site in Shunyi District, Beijing Capital International Airport Economic Zone (Tianzhu Free Trade Zone), Shunyi District, Beijing, adjacent to Beijing International Airport. Covering an area of more than 80,000 square metres, BAESL will be able to support up to 250 shop visits per year at full capacity, which it is expected to reach in the mid-2030s. This activity will be supported by up to 800 employees who will deliver world-class MRO services on Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines.

BAESL is the first Rolls-Royce MRO joint venture in Mainland China, and the fourth in its global MRO network, which includes HAESL, SAESL and N3. This facility will complement Rolls-Royce’s existing MRO footprint, satisfying the capacity increase that will be required based on future shop visit load forecasts.

Rob Watson, President – Civil Aerospace, Rolls-Royce, said:

Mr. Ni Jiliang, Senior Vice President of Air China Limited and Chairman of BAESL, said:

Mr. Ni Jiliang, Senior Vice President of Air China Limited and Chairman of BAESL, said:

“Breaking ground on BAESL is a significant milestone for this strategically important joint venture in mainland China. When it enters into operation in 2026, BAESL will support the growing MRO capacity requirements of our global customers, and in particular those in the region where we have had a presence since the first Dart Engine powered Vickers Viscount was delivered to China in 1963. Now our third largest single-country market, China is also an important part of our supply chain.

“Today’s ground-breaking ceremony is a great celebration of our 60^th year anniversary in China and of the successful relationship that Rolls-Royce has had with Air China over the past decades. Together, we are committed to delivering excellence in MRO services and building BAESL into a state-of-the-art MRO company.”

Mr. Ni Jiliang, Senior Vice President of Air China Limited and Chairman of BAESL, said:

Mr. Ni Jiliang, Senior Vice President of Air China Limited and Chairman of BAESL, said:

Mr. Ni Jiliang, Senior Vice President of Air China Limited and Chairman of BAESL, said:

BAESL is poised to enter construction phase. Once operational, it will effectively improve Air China's high-thrust engine operation and further ensure the flight safety of our fleet. Air China has been consistently dedicated to developing aircraft maintenance capabilities, ensuring fleet reliability, and enhancing the industrialisaton of aircraft maintenance.

“BAESL will further improve Air China’s capability in high-thrust engine maintenance, enhance competitiveness of our MRO industry chain and build a comprehensive MRO platform of scale. In the future, BAESL will take advantage of the good location and investment environment, leveraging the resource strengths from shareholders, to provide better value for our global customers. BAESL is undoubtedly on track to become a world-leading aero engine MRO enterprise."

The facility is designed with the vision of building BAESL into a world-class MRO company, with technologically advanced equipment, digitalised systems and sustainable solutions. Located in Beijing, the new facility supports Rolls-Royce’s sustainability goals by reducing overseas transportation of engines for MRO activity, and will also support the continued expansion of Rolls-Royce’s capable, competitive and flexible global Care Network.

About Rolls-Royce Holdings plc

1. Rolls-Royce develops and delivers complex power and propulsion solutions for safety-critical applications in the air, at sea and on land. Our products and service packages enable our customers to connect people, societies, cultures and economies together; they meet the growing need for power generation across multiple industries; and enable governments to equip their armed forces with the power required to protect their citizens.
2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers. We are committed to making our products compatible with net zero carbon emissions to meet customer demand for more sustainable solutions.
3. The annual underlying revenue was £12.69 billion in 2022, and the underlying operating profit was £652m.
4. Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)

www.rolls-royce.com

About Air China

Air China is the only flag-carrier aviation company in China, and a member of the world’s largest airline alliance Star Alliance, the official aviation transportation partner of the 2008 Beijing Olympics and Paralympics and the 2022 Beijing Winter Olympics and Paralympics. In 2023, according to the assessment of the World Brand Lab, Air China boasted a brand value of RMB 235.162 billion, the highest among Chinese civil aviation companies.

Headquartered in Beijing, Air China has several branch offices in areas such as Southwest China, Zhejiang, Chongqing, Tianjin, Shanghai, Hubei, Xinjiang, Guangdong, Guizhou, Tibet, and Wenzhou. Air China’s main subsidiaries include Shenzhen Airlines Co., Ltd. (As well as Kunming Airlines Co., Ltd.), Shandong Airlines Group Co., Ltd., Beijing Airlines Co., Ltd., Dalian Airlines Co., Ltd., Air China Inner Mongolia Co., Ltd., Air Macau Co., Ltd., Ameco Beijing, Air China Shantou Industrial Development Company, Chengdu Falcon Aircraft Engineering Service Co., Ltd., and Air China Import and Export Co., Ltd.

As of June 30, 2023, Air China (including its subsidiaries) had a total of 902 aircrafts of all types, mainly Boeing and Airbus. Our service was further extended to almost 1,200 destinations in 186 countries (regions) through cooperation with airlines such as Star Alliance Members.