Rolls-Royce and Air China Announce Joint Venture for Engine Maintenance, Repair and Overhaul Facility in Beijing

[beijingwalker]

Rolls-Royce and Air China Announce Joint Venture for Engine Maintenance, Repair and Overhaul Facility in Beijing​

Sept. 2, 2022
The new facility, BAESL, will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines. Air China currently has all three engine types in its fleet.

Rolls-Royce and Air China are entering into a new 50/50 Joint Venture (JV) maintenance, repair and overhaul (MRO) facility in Beijing, China. The new facility, BAESL (Beijing Aero Engine Services Company Limited), will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines. Air China currently has all three engine types in its fleet.


At full capacity, which is expected to be achieved in the mid-2030s, BAESL will be able to support up to 250 shop visits per year. The facility will offer MRO services to Air China as well as our other airline customers based in Greater China and beyond. Today, Rolls-Royce powers 60% of China’s widebody fleet, powering more than 550 aircraft in service or on order. Our Trent 700 engines also power 90% of the country’s Airbus A330 fleet and the Greater China fleet represents 20% of all Trent engines flying today.

This JV is an important part of Rolls-Royce’s strategy for China, in terms of deepening our relationship with Air China, giving customers the best level of service, improving the cost-competitiveness of our business and generating incremental MRO capacity as shop visits grow. It aligns in-region growth with in-region capacity providing customer proximity, which supports sustainability goals by reducing overseas transportation of engines for MRO activity. The new facility will also support the continued expansion of our capable, competitive and flexible global Care Network. It is part of a strategy to expand the Rolls-Royce MRO network in a cost-effective way in order to support our growing fleet, as outlined at our Investor Day in May.


Chris Cholerton, president – Civil Aerospace, Rolls-Royce, said, “The announcement of this JV is an important milestone for Rolls-Royce in China, where we have been powering the nation’s airlines for more than 50 years. Air China is a strategic partner for us, having successfully grown together over many years, and I am delighted to now expand our relationship with this exciting partnership in MRO and look forward to continued growth of our collaboration.”

Ma Chongxian, president of Air China, said, “With safe operation as top priority, Air China has long been committed to developing aircraft maintenance capabilities and ensuring the reliability of the fleet, meanwhile striving to promote the industrialization of aircraft maintenance. In the future, Air China and Rolls-Royce will continue to deepen our profound partnership and start a new journey of cooperation in the field of high thrust engine maintenance. We look forward to building the Joint Venture into a world-class aero engine MRO company and increasing the volume of China’s civil aero engine MRO industry."

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[Nasr]

With an Ultra Right Wing (liz truss) touted to be the next prime minister of britain, who has indicated that she will define China as a threat to britain. What is the probability of this venture between Air China and Rolls Royce becoming a reality?

 

[beijingwalker]

With an Ultra Right Wing (liz truss) touted to be the next prime minister of britain, who has indicated that she will define China as a threat to britain. What is the probability of this venture between Air China and Rolls Royce becoming a reality?

Businesses don't listen to their governments, US investment into China also hit a record high recently.

 

[Beast]

With an Ultra Right Wing (liz truss) touted to be the next prime minister of britain, who has indicated that she will define China as a threat to britain. What is the probability of this venture between Air China and Rolls Royce becoming a reality?

Actually, this joint venture is not very critical. China has a take it or leave it attitude. China own aviation propulsion sector are actually progressing very well. CJ-1000A and CJ-2000 engine are all in place in just 2-3 years time.

 

[beijingwalker]

Businesss is business, they don't always listen to the politicians.

 

[beijingwalker]

"worrying" situation in China: Rolls-Royce continue to make investments in Nation​

By ANIKET DIXIT

Nov 16 2022 02:07 PM

USA: Concerns are growing about the unpredictable nature of Rolls-Royce, a Chinese supply chain that has been disrupted by stringent coronavirus control measures.

The British aerospace company is ramping up its investments in the still-important aviation market.

Julian McCormack, Rolls-Royce country manager in Greater China, said earlier in the pandemic, from 2020-21, the aircraft engine maker saw relatively little disruption to its supply chain in China because of its management of the coronavirus outbreak.

And it gives us a lot of reassurance about how China can control the pandemic and how we can further rely on our supplies in China, McCormack told the Post while speaking to media outside the Zhuhai Air Show last week.

However, this year, that belief has waned. Under a zero-Covid policy that still requires long lockdowns, mass screening, strict border controls and quarantines, coronavirus controls that once relaxed the company have continued and become more strict.

McCormack noted how the lockdowns and disruptions had an impact on the aerospace company's suppliers and manufacturing facilities in Liaoning, Shaanxi, Sichuan and Jiangsu provinces.

As a result of the COVID-control measures, he claimed, "The situation for 2022 has been more worrying: we have seen more blockages inside China." “The last 12 months in lockdown have been quite uncertain, and we have worked hard to manage it.

“It has been difficult in terms of logistics and shipping as well as manufacturing. As a business, we need continuity and predictability in our operations in China, and we sincerely hope that things will improve in the coming months.

While China has loosened some coronavirus containment measures, such as reducing quarantine periods for visitors from abroad, it has not provided a timeline for a zero-Covid exit strategy.

As demand for air travel soars globally, the world's airline industry trade group, the International Air Transport Association (IATA), said earlier this month that China's recovery from the coronavirus pandemic remains "outlier".

"China continues to be the outlier as it pursues a zero-Covid strategy that keeps borders largely closed and causes wildly volatile volatility in its domestic market, down 46.4% in September from a year ago Is.

According to IATA Director General Willie Walsh, this is in stark contrast to the rest of Asia-Pacific, where international traffic grew by 464.8 percent compared to the same period last year, despite China's poor performance.

However, despite the country's slow recovery in air travel demand, Rolls-Royce has formed a joint venture with China's top airline Air China to open a new maintenance, repair and overhaul facility in Beijing.

The Trent 700, Trent XWB-84, and Trent 1000 engines for widebody passenger jets will be serviced by the joint venture, known as Beijing Aero Engine Services Company. All three types of engines are present in the Air China fleet.

Although state media in China reported in September that the project was valued at 2.61 billion yuan (US$369 million), Rolls-Royce did not disclose the investment amount.

According to MacCormac, the joint venture is a "long-term investment" for the aerospace company and "one of the strategic responses" to meet the growing demand for engine maintenance in the world over the next 10 to 15 years. Which will originate in China.

Minimize overseas transport of engines for aviation maintenance, repair and overhaul activity, he said, in order to support our sustainability goals and align growth in the region with regional potential for customer proximity.

To that end, the company's joint venture with Air China in Beijing is being built to manage 250 "shop visits" annually by the mid-2030s, according to McCormack. Such trips often require engine maintenance.

Beijing Aero Engine Services Co.'s total employee count is estimated to be 800 when it reaches capacity, he continued.

"worrying" situation in China: Rolls-Royce continue to make investments in Nation | NewsTrack English 1

USA: Concerns are growing about the unpredictable nature of Rolls-Royce, a Chinese supply chain that has been disrupted by stringent coronav..|News Track

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