Governor McDonnell Announces Rolls-Royce Eyes Expanding Footprint in Virginia with New High-Tech Manufacturing Facility

RICHMOND - Governor Bob McDonnell today announced that Rolls-Royce, the global power systems company, is considering a new advanced manufacturing facility at its Crosspointe location near Richmond, Va. The new factory would be an advanced blade manufacturing capability involving high-precision turbine blades for some of the world’s most sophisticated aircraft engines built by the company. Significant growth in the company’s aero engine order book provides the stimulus for this and other Rolls-Royce investments being made in America.

Speaking about the Rolls-Royce announcement, Governor Bob McDonnell remarked, “When Rolls-Royce chose Virginia and Prince George County for its largest advanced manufacturing campus in North America, we were confident that it would be transformational for the Commonwealth. This project is precisely the kind of high-tech investment in our future we need and want in Virginia. The company’s commitment to bringing quality, high-paying jobs to our citizens is reinforced by its consideration of the second plant at Crosspointe, and sends a very clear message that Rolls-Royce believes in the American worker. The partnership between Rolls-Royce and the Commonwealth is paramount, and as the Crosspointe campus grows it will continue its momentum.”

The Advanced Blade Machining Facility would be the second major investment by Rolls-Royce in its Crosspointe campus, a new advanced manufacturing and research center that opened last year in Prince George County, Virginia.

“Our vision for Crosspointe is to create a hub of advanced manufacturing innovation, one that is based on partnerships with major universities, government and business – partnerships critical to the future of American jobs and the economy,” said James M. Guyette, chairman, president and CEO, Rolls-Royce North America. “This potential investment in the Advanced Blade Machining Facility would take us another step closer to making our vision for Crosspointe a reality,” added Guyette.

The Advanced Blade Machining Facility will require a substantial investment from Rolls-Royce and is projected to employ up to 140 highly skilled workers. The high-precision components planned to be manufactured at this facility will be used on some of Rolls-Royce’s most advanced engine designs and will be operated on the Boeing 787 Dreamliner, Airbus A380 and A350 XWB.

Plans anticipate new construction of an approximate 90,000 sq.-ft. factory and would be located adjacent to the recently completed Disc Manufacturing Facility that is currently in production.

Subject to a successful evaluation and final approval, Rolls-Royce anticipates groundbreaking on the new facility by the end of 2012, with construction completed in 2013 and pre-production operation starting in 2014.

Rolls-Royce is investing in the United States to help the company fulfill its $96 billion order book. The company’s North American headquarters are located in Fairfax County, Virginia. The first Crosspointe facility opened in May 2011 and is a center of excellence for the manufacture of engine discs, one of the most critical components of an engine. Highly skilled workers at the 180,000 sq.-ft. facility manufacture these discs for advanced civil aerospace engines. This existing facility represents an initial investment of $170 million and will host approximately 150 jobs.

“The investments we are making today ensure that we will continue to deliver excellence to our customers in the future. We are investing in Virginia because it’s an environment that allows us to be globally competitive,” said Guyette.

“Rolls-Royce has made a major investment in Virginia’s economy, and has shown that it believes in the future of and the ability of our citizens to manufacture high-tech engine parts at a competitive price,” said McDonnell. In the process, Rolls-Royce is also generating significant new jobs. That’s the kind of corporate commitment and partnership the Commonwealth needs and embraces.”

Key facts about Crosspointe

• Rolls-Royce Crosspointe is located on more than 1,000 acres in Prince George County, Virginia, approximately 30 miles south of Richmond. 
• A supplier site extends more than 120 acres at Crosspointe and will give prospective suppliers an opportunity to co-locate with Rolls-Royce and its partners.
• The Commonwealth Center for Advanced Manufacturing, a public-private partnership created to deliver a step-change in design and manufacturing technologies is currently under construction at Crosspointe.
• The Commonwealth Center for Aerospace Propulsion Systems, a virtual research laboratory in partnership with the University of Virginia, Virginia Tech and Rolls-Royce, addresses technology challenges specific to Rolls-Royce’s continuous improvement in advanced manufacturing.

Notes to Editors:

1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defense aerospace, marine and energy. 
2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries.
3. Annual underlying revenue was $17.5 billion* (£11.3 billion) in 2011, of which more than half came from the sale of aftermarket services. The firm and announced order book stood at $96.4 billion* (£62.2 billion) at December 31, 2011, providing visibility of future growth.
4. Rolls-Royce employs over 40,000 skilled people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers. 
5. In 2011, Rolls-Royce invested $1.4 billion* (£908 million) in research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions. 
6. Rolls-Royce supports a global network of 28 University Technology Centers, which connect the company’s engineers with the forefront of scientific research.
7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
8. In North America, Rolls-Royce employs more than 9,300 people in 66 locations in 26 states and seven sites in six Canadian provinces. In the United States, Rolls-Royce employs more than 7,700 people in 26 states.
9. In the US, Rolls-Royce operates 15 manufacturing, assembly or test facilities in 10 states including California, Indiana, Louisiana, Maryland, Massachusetts, Mississippi, Ohio, Texas, Virginia and Washington.

* Assumed exchange rate: £1.00= $1.55