13 July 2016, Farnborough, United Kingdom

Rolls-Royce and Mubadala Development Company, the Abu Dhabi-based investment and development organisation, have announced further details of a new Approved Maintenance Center (AMC) in the Emirate and confirmed plans for a manufacturing facility that will produce aero engine components.

Rolls-Royce is committed to developing a competitive, capable and flexible Trent Service Network to support the growing number of Trent engines that will enter service as Rolls-Royce increases its installed base to more than 50 per cent of the widebody passenger market. This will be the second AMC in which Rolls-Royce does not hold an equity stake. The first, Delta TechOps, was announced in October 2015.

Mubadala will create a purpose-built facility that will carry out work on the Trent XWB, the world's most efficient aero engine that powers the Airbus A350 XWB. The Middle East region is forecast to have one of the world's largest concentrations of Trent XWB engines with more than 20 per cent of the 1,600 sold to date, due to be operated by airlines in the region, including the 62 A350s to be operated by Abu Dhabi-based Etihad Airways.

Rolls-Royce is also creating a world-class, competitive global supply chain within growth regions and key strategic markets and which gives the flexibility required as Rolls-Royce increases engine production. To support those developments, Mubadala will open a new manufacturing center that will deliver parts for the Trent engine family, including the Rolls-Royce Trent XWB. This new manufacturing center will complement the existing disc manufacturing investment that Rolls-Royce has previously made in Washington, UK and Crosspointe, US.

The announcement, made at the Farnborough Airshow, follows the Strategic Framework Agreement signed at the Dubai Airshow in November 2013 to establish the Emirate of Abu Dhabi as a key member of Rolls-Royce's global network for maintenance and manufacturing.

Homaid Al Shimmari, Mubadala, Chief Executive Officer, Aerospace & Engineering Services, said: "The creation of a new Approved Maintenance Center and an engine component manufacturing facility are both key milestones in the creation of a leading global aerospace hub in Abu Dhabi, further driving economic diversification."

Eric Schulz, Rolls-Royce, President - Civil Aerospace, said: "We're pleased to work with Mubadala as it creates a global aerospace hub in Abu Dhabi. The creation of a new Trent XWB Approved Maintenance Center, alongside manufacturing capability in the UAE, further demonstrates our commitment to this region, which is now so critical to the growth of our business."

The AMC will service up to 150 engines a year in a new facility located at the Nibras Al Ain Aerospace Park, which is expected to be operational in 2021. The AMC agreement will be finalised in the second half of 2016, and construction of the AMC facility is expected to begin as early as 2017. .

The manufacturing center at the same site will produce discs for the Trent XWB, with capability to make similar parts for other Trent engine types. It is expected to start operations in 2018. Rolls-Royce and Mubadala have also reached agreements to enter into a number of manufacturing development projects to support Mubadala's goal to become a Tier 1 aerospace industry supplier.

-Ends-

About Mubadala Development Company
Established and owned by the Government of Abu Dhabi, the company's strategy is built on the creation of partnerships and on long-term, capital-intensive investments that deliver strong financial returns, contribute to the growth and diversification of Abu Dhabi's economy, and create opportunities for current and future generations in the United Arab Emirates.

Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, semiconductors, metals & mining, oil & gas, renewables, information & communications technology, healthcare, real estate & infrastructure, utilities, and defense services.

For more information about Mubadala please visit www.mubadala.com.

About Rolls-Royce Holdings plc
1.     Rolls-Royce's vision is to be the market-leader in high performance power systems where our engineering expertise, global reach and deep industry knowledge deliver outstanding customer relationships and solutions. We operate across five businesses: Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems.

2.     Rolls-Royce has customers in more than 120 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.

3.     We have three common themes across all our businesses:

·         Investing in and developing engineering excellence

·         Driving a manufacturing and supply chain transformation which will embed operational excellence in lean, lower-cost facilities and processes

·         Leveraging our installed base, product knowledge and engineering capabilities to provide customers with outstanding service through which we can capture aftermarket value long into the future.

4.     Annual underlying revenue was £13.4 billion in 2015, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £76.4 billion at the end of 2015.

5.     In 2015, Rolls-Royce invested £1.2 billion on research and development. We also support a global network of 31 University Technology Centers, which position Rolls-Royce engineers at the forefront of scientific research.

6.     Rolls-Royce employs over 50,000 people in more than 46 countries. Nearly 15,700 of these are engineers.

7.     The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2015 we employed 228 graduates and 277 apprentices through our worldwide training programmes.

© Press Release 2016