Rolls-Royce Plans $600M Upgrade Of Indianapolis Plant

Dependent on oil and gas-related customers for approximately 60 per cent of its income, Rolls-Royce’s marine unit previously announced it would cut a few 600 positions.

A few of the equipment in the building dates back to World War II.

President and CEO Marion Blakey says the aerospace industry leader will spend years modernizing its manufacturing operations on Indianapolis’ southwest side.

The British maker of jet engines for Boeing Co. and Airbus Group SE planes has been seeking to boost profitability and cut its workforce after a series of profit warnings linked to weakness in key markets for its products. “This investment, coupled with the most skillful women and men in the world, enables us to be competitive on a global level for decades to come”.

A company with thousands of Indiana employees is making a major investment to keep them here.

“During our long relationship with Rolls-Royce, the UAW has always been committed to being part of the solution for our next century of innovation at our manufacturing operations”. Maintaining current guidance for the marine division, Rolls-Royce said today that the latest staff layoffs would be carried out by the end of 2016 leaving a headcount of around 5,000 in the division. They include conditional tax credits and a skills enhancement grant through the Indiana Economic Development Corporation (IEDC), both of which have been approved by the IEDC Board of Directors. Develop Indy – a business unit of the Indianapolis Chamber of Commerce – has requested the city of Indianapolis look at additional incentives.

Rolls-Royce joins a list of aerospace and defense companies growing in Indiana. These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines.

Chief Executive Warren East’s aim with the marine restructuring will be to strip out management layers and rebase costs in a business that relies on an energy industry now hit by low global oil prices, the Financial Times said.