BBC News
watch One-Minute World News
Last Updated: Wednesday, 19 March 2008, 16:08 GMT
Rolls-Royce secures engine deal
Aircraft engine
Rolls-Royce said the contract would safeguard jobs at East Kilbride
The Rolls-Royce plant in East Kilbride has secured 6m investment after winning a new engine service contract.

The South Lanarkshire facility will repair and overhaul BR710 engines, which are due to enter service with the RAF Nimrod aircraft in 2010.

Rolls-Royce will invest 4.5m into the project with further cash coming from the Scottish Government and Scottish Enterprise Lanarkshire.

The company said the deal would help to safeguard 129 jobs over five years.

The first engine will be serviced at East Kilbride in September this year.

Rolls-Royce said the programme would continue at the rate of 40 engines per year for the first five years, with further growth expected.

'Stiff competition'

Graeme Waddell, business director at the Rolls Royce repair and overhaul facility, said the East Kilbride plant would now be well placed to take advantage of emerging European and Middle Eastern markets.

He said: "This work has been won in the face of stiff competition. It's a further indication of the company's continued commitment to Scotland and to East Kilbride, where we have had a significant presence for over 50 years."

Enterprise Minister Jim Mather MSP welcomed the news as a boost to the area's economy.

The Scottish Government have invested 845,000 in the plant through a Regional Selective Assistance grant.

Scottish Enterprise Lanarkshire has also contributed 608,000 under the Training Plus initiative.

A 2m refurbishment of an existing engine test-bed at East Rogerton in East Kilbride will also be included in the costs.

The BR70 engine type powers the Gulfstream 500/550 and Bombardier Global Express aircraft.

It will also power the Nimrod MRA4, the RAF's latest generation reconnaissance aircraft which is expected to enter service in 2010.

Plans to move the Rolls-Royce plant at East Kilbride to a new site at Langlands were put on hold in 2006.

A spokesman for Rolls-Royce said the company would continue to review the decision on whether to relocate on a regular basis but the exchange rate and the cost of raw materials were major factors.



SEE ALSO
Rolls-Royce set to cut 2,300 jobs
11 Jan 08 |  Business
Rolls-Royce postpones plant move
01 Sep 06 |  Glasgow, Lanarkshire and West
Rolls-Royce plans anger residents
27 Feb 06 |  Scotland

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific