Rolls-Royce expands non-UK footprint.

Rolls-Royce has announced plans to invest in two new aero engine facilities in Singapore and in Virginia in the United States "in order to meet the increasing needs of its global business and its growing customer base around the world". The company says that the decision to locate the new facilities in the US and Singapore was driven by three strategic considerations: the attractions of locating major facilities close to customers in no of the largest and fastest-growing aerospace markets in the world; the business continuity benefits that will arise from locating the assembly and test of Trent engines on two continents; and a reduction in the company s exposure to the dollar.

Rolls-Royce already has 45% of its Research and Technology, 40% of its employees and 50% of new progrommes located outside the United Kingdom. At the same time, the Company has maintained its commitment to the UK and over the last five years, has invested 837 million [pound sterling] in UK capital projects, which accounts for 80% of its wordwide capital investment over this period.

The investment in these two new facilities, which amounts to 150 million [pound sterling] over the next five years, will cover construction of a new facility in Singapore to assemble and test large civil engines, starting with the Trent 1000 for the Boeing 787 and the Trent XWB for the Airbus A350 XWB. Together with its existing UK facility in Derby, this will provide the Company with a dual sourcing capability for the assembly and test of large civil engines, including future new versions of the Trent engine.

The Company's Derby facility is planned to remain the centre of expertise for large civil engines, with the capability to design and develop these engines. It will also continue to assemble and test the Company s portfolio of large civil engines.

The new facility in Virginia will assemble and test the RB282, the engine selected in June by Dassault to power its new super midsize corporate et and potentially the first in a family of small engines far the corporate and regional jet market. The development and production proving programmes for the RB282 will be undertaken in the UK at recently completed facilities in Bristol.

The new facility in Virginia will also have the capability to undertake blisk manufacture for the F136 engine for the Joint Strike Fighter (JSF). It will also provide the Company with options for future advanced manufacturing activities as opportunities arise.

The facility will be fully operational by the end of 2009. The Commonwealth of Virginia and Prince George County will provide economic incentives to support the project. This investment builds on the Group's strong presence in North America and over time is expected to create around 500 jobs in Virginia, assuming the F136 programme proceeds to volume production.

In other news, Rolls-Royce has formally opened a new outdoor jet engine testing facility at NASA's John C. Stennis Space Center in Mississippi. The facility will be used to test development and prototype et engines for performance, noise, validation of safety systems and other factors. Initially, it will test the company's latest, high-thrust Trent engines, the Trent 1000 and Trent 900, being developed for the Boeing 787 Dreamliner and Airbus A380, respectively. This is the first Rolls-Royce test facility of its kind outside the UK and the first built from the ground up in the US. There are only three such testing facilities in the world. Rolls-Royce broke ground at Stennis just over a year ago and to date has spent nearly $42 million on construction and upgrades alone. Rolls-Royce previously conducted its outdoor jet engine testing at Hucknall, UK.