Rolls-Royce secures engine deal

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.