Chris Jasper/LONDON
Rolls-Royce and its part-owned Spanish subsidiary Industria de Turbo Propulsores (ITP) are discussing the transfer of low-pressure turbine manufacturing and assembly for the Trent 500 programme to Spain. ITP could take over design and manufacture of all R-R low pressure blades.
R-R confirms that ITP and South Africa's Denel Airmotive are extending risk and revenue sharing partnerships on the 500 programme, while the Trent family has two new investors: Techjet, R-R's 50:50 joint venture with Israeli machining specialist Wertheimer, and a consortium of unidentified international financial institutions.
R-R has contracts - or potential contracts - to supply engines to airlines in all three countries where it has extended its risk-sharing deals. Israeli flag carrier El Al has ordered Trent 800-powered Boeing 777s, as did South African Airways, although it did not take delivery. It is understood to be considering Airbus A330/A340 orders, with Trent power an option. Iberia may also consider A340s as Boeing 747-200 replacements. R-R says there are no direct links to the new deals, but that part of its regional strategy "is to gain positioning".
ITP says "advanced" negotiations are taking place over R-R taking charge of Trent 500 low-pressure turbine manufacture - worth "$800 million for the following 10 years" - and that this could see it "take a total responsibility of the low-pressure turbines for R-R's engines, both in design and manufacturing".
R-R owns 46.8% of ITP, with the balance split between Spanish engineering company Sener and state holding company SEPI. The UK giant may increase its holding should either choose to decrease their stakes. ITP's sales grew by 19% last year.
Source: Flight International
