Hucknall manufactures a range of aero-engine parts, which the company said will bring ITP Aero new capabilities and become a critical part of the enlarged business, helping to secure the future of the site. As part of ITP Aero, the Hucknall site will, in future, Rolls-Royce said have the potential to unlock new growth and investment opportunities.
This comes as part of the ongoing detailed review of the civil aerospace facility footprint, as it is focusing on protecting key skills and technologies, reducing costs and positioning of the business for recovery from the impact of the Covid-19 pandemic on global commercial aviation.
The firm said the actions it is proposing will enhance the position of ITP Aero, currently wholly-owned by Rolls-Royce, as a major global aerospace company that will be able to compete for business from other players in the aerospace industry and target new opportunities.
On 20 May 2020, the firm announced a major restructuring, predominantly of its civil aerospace business, as it looks to achieve total annual pre-tax cash savings of at least £1.3bn by the end of 2022.
Rolls-Royce is also proposing to consolidate the manufacture of aero-engine structures into ITP Aero, as due to the significant reduction in global demand for products and services from commercial aviation customers, which is forecast to last several years, it must reduce manufacturing capacity and cost base in order to protect our remaining workforce.
The company said ITP Aero, currently undergoing its own restructuring, offers a more cost competitive option than an existing structures facility in Barnoldswick and it will start consultation on a proposal to close the structures facility on the site, adding it does not mean it is closing the Barnoldswick site.
Following a proposal in August to relocate part of Rolls-Royce fan blade manufacturing, Barnoldswick will be the home of a product development and technical support centre for wide chord fan blades and continue to manufacture blades for a range of defence and civil aerospace applications.
As announced alongside its half year results in August, the company said it has identified a number of potential disposals that are expected to generate proceeds of more than £2bn in order to strengthen its balance sheet, and these include ITP Aero.
Rolls-Royce has informed colleagues in Inchinnan, Scotland, that the objective is to continue the manufacture of aero-engine turbine blades and compressors aerofoils in the facility there.
The company said it has signalled its intention to discuss with the trade union options to make the site more competitive, reduce operating costs and define the medium-term direction for the site. Due to the continued reduction in demand for aero-engine shafts, however, it no longer has the workload to maintain production in multiple locations and is proposing to consolidate their manufacture, some of which was previously carried out in Inchinnan, into another site in Derby.
Rolls-Royce said at its site in Ansty, UK, the objective is to continue the manufacture of aero-engine fan cases at its facility there, but will discuss with the trade union options to make Ansty more competitive, reduce operating costs and define the medium-term direction for the site.
Any impact on jobs across the business as a result of today’s announcement is included within the figure of at least 9,000, across Rolls-Royce, announced in the restructuring of 20 May 2020.
Chris Cholerton, president of civil aerospace at Rolls-Royce, said the pandemic has created a “once-in-a-generation shock” to the whole of commercial aviation and it is going to take years to recover and by completing the restructuring of the civil aerospace business, it can emerge as a “stronger, more efficient and sustainable business” able to tackle some of the world’s toughest technological challenges.
He added: “The proposals we are laying out today will provide an opportunity for our workforce in Hucknall to benefit from being part of an enlarged global aerospace leader that can compete for business with other engine manufacturers. But I understand that the announcement will be hugely upsetting for our colleagues in Barnoldswick.
“This is a very difficult proposal to make, but we cannot afford to retain every Rolls-Royce factory that was supported by demand that has been dramatically reduced by the pandemic. No government support scheme can replace sustainable customer demand and no government can sign-up to extending the sort of short-term measures we have been very grateful for, over multiple years."
