Rolls-Royce North America Inc.

01/27/2017 | Press release | Distributed by Public on 01/27/2017 08:38

Rolls-Royce ahead of schedule on $600 million investment in advanced manufacturing in Indianapolis

Friday, 27 January 2017

(Indianapolis, IN - January 27, 2017) Rolls-Royce in Indianapolis is one year into its five-year project to update its manufacturing facilities located at Tibbs Avenue and Raymond Streets, and project leaders report that many aspects of this multi-facetted project are ahead of schedule. In addition, the state is seeing benefits in terms of economic impact, employment and capital investments.

In October, 2015 the company announced it will invest nearly $600 million to modernize its manufacturing operations in Indianapolis and to conduct technology research, ensuring that Indiana remains a leader in the aerospace industry for decades to come. Of that, nearly $400 million is dedicated to the modernization of operations, and the remaining $200 million is earmarked for technology research.

Today, the modernization project is well underway, with over $122 million pumped into the local economy so far and another $117 million expected this year.

Nearly 600,000 sq. ft. of space is currently under construction in the new Rolls-RoyceIndianapolis Operations Center. Of that, 150,000 sq. ft. of modern manufacturing space is ready to occupy or has returned to production. Once finished, three independent manufacturing centers will occupy the property. A new 150,000 sq. ft. Rotatives factory is now ready to occupy. A second facility, the Turbines factory, is 9-months ahead of schedule and will be ready to occupy by April. The third facility, Assembly and Test, is expected to be completed by the end of 2017.

'We are very pleased with our progress. We could not have achieved or exceeded these aggressive milestones without some of the best project management, engineering and UAW employees in the world. In addition, we have a network of highly skilled and engaged contractors from around the region who are helping us meet our milestones,' said David Mair, Project Director for the Revitalization of Indianapolis Operations. 'We've also had a tremendous outpouring of support from the community and our government leaders who are keen to hear how we are progressing.'

Areas that are already completely modernized include:

  • The Rolls-RoyceDevelopment Center, an area that will test and prove manufacturing methods
  • A Materials Research Laboratory that focuses on advanced material development
  • One of two new cells used to test helicopter engines

So far, the company has employed more than 1,500 people who work for more than 150 main contractors, mostly Indiana-based companies, including: Pepper Construction, ERMCO, BMWC Constructors, New Roads Environmental, Trinity Safety Group, Arcadis, and BRPH Architecture.

This investment is the largest by Rolls-Roycein the United States since the company bought the former Allison Engine Company in 1995. Upgrades will include new manufacturing and assembly operations that will match the advanced standards already present in many other Rolls-Roycefacilities in Indiana and around the world. The modernization plan will also consolidate operations and significantly reduce utility costs.

About Rolls-RoyceIndianapolis
For 100 years, Rolls-Royceand its predecessor companies have been engineering, designing and manufacturing advanced technology in the city of Indianapolis. Today, Rolls-Royceemploys 4,000 people in Indianapolis, with 1,050 working in production and nearly 1,400 engineers. Engines designed, assembled and tested at Rolls-Roycein Indianapolis power U.S. Department of Defense aircraft, civil helicopters, regional and business jets, and power systems for U.S. Naval vessels. These include the F-35B Lighting II, C-130J Hercules; V-22 Osprey; Global Hawk UAV: Citation X; various commercial helicopters and the new naval Ship-to-Shore Connector program.

About Rolls-RoyceHoldings plc

  1. Rolls-Royce's vision is to be the market-leader in high performance power systems where our engineering expertise, global reach and deep industry knowledge deliver outstanding customer relationships and solutions. We operate across five businesses: Civil Aerospace, Defense Aerospace, Marine, Nuclear and Power Systems.
  2. Rolls-Royce has customers in more than 120 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
  3. We have three common themes across all our businesses:
    • Investing in and developing engineering excellence
    • Driving a manufacturing and supply chain transformation which will embed operational excellence in lean, lower-cost facilities and processes
    • Leveraging our installed base, product knowledge and engineering capabilities to provide customers with outstanding service through which we can capture aftermarket value long into the future.
  4. Annual underlying revenue was $19.43 billion* in 2015, around half of which came from the provision of aftermarket services. The firm and announced order book stood at $110.78 billion* at the end of 2015.
  5. In 2015, Rolls-Royceinvested $1.74 billion* on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royceengineers at the forefront of scientific research.
  6. Rolls-Royce employs over 50,000 people in more than 46 countries. Nearly 15,700 of these are engineers.
  7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2015 we employed 228 graduates and 277 apprentices through our worldwide training programs.

*Based on an exchange rate of $1.45

Media Relations Contact:
Joel P. Reuter
Vice President, Public Affairs
Rolls-RoyceNorth America
Tel: +1 (317) 410-1000
E: [email protected]
Twitter: @RollsRoyceNA

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