Rolls-Royce and Hispano-Suiza (Safran) sign final agreement to create joint venture

Back on July 4th 2014 a memorandum of Understanding (MoU) was signed between Rolls-Royce and Hispano-Suiza (Safran). Today, the 24th October 2014, it has been announced that Hélène Moreau-Leroy, Chairman and CEO of Hispano-Suiza and Norbert Arndt, Rolls-Royce Executive Vice President, Structures and Transmissions, have signed a final agreement for the creation of a jointly-owned company that will be involved with the design, development, production and support of accessory drive transmissions (ADTs) for all future Rolls-Royce civil aircraft engines. Providing approval of this agreement is obtained from the appropriate regulatory authorities, the joint venture should commence operations early in 2015.
The design and production of accessory drive transmissions by Hispano-Suiza, together with engine design and propulsion systems integrated by Rolls-Royce, will come about through the new company’s ability to capitalize on the combined expertise and experience of the two original companies. The new company intends to cover the complete range of civil aircraft, to include anything from business jets to widebody commercial jet liners. Having won the engine contract with the Trent 7000 in July this year, the new business will contribute to Airbus’ new A330neo.
This new company will operate from three locations, with the business headquarters being based at Hispano-Suiza’s premises in Colombes on the outskirts of Paris, as well as using Rolls-Royce premises in both Derby in the UK and Dahlewitz in Germany. Though the location has yet to be confirmed, the new business will begin to establish a production plant ready for operation in late 2016 / early 2017. It is expected the new company will have an initial staffing level of approximately 180 employees which will include existing staff from both original businesses.
According to Arnd, “With each parent company contributing its world-class skills to this joint venture, we have taken a major step forward in performance…… Our aim is to meet the requirements of our customers, both aircraft-makers and airlines, by giving them outstanding, cost-competitive products.” As far as Moreau-Leroy was concerned. “For both Rolls-Royce and Hispano-Suiza, the creation of this joint venture marks a major step towards the consolidation of our historical relationship within a long-term partnership, and enables us to stake out a position on new aircraft programs. It will also provide exciting new opportunities for our employees.”