• Friday, January 24, 2020

Rolls-Royce Offers China Engine Plant to Win Deal on Jet

Discussion in 'China & Far East' started by beijingwalker, Feb 28, 2019.

  1. beijingwalker

    beijingwalker ELITE MEMBER

    Messages:
    24,404
    Joined:
    Nov 4, 2011
    Ratings:
    +13 / 43,969 / -8
    Country:
    China
    Location:
    China
    Rolls-Royce Offers China Engine Plant to Win Deal on Jet
    Bloomberg News
    Feb.27 2019
    [​IMG]
    The Rolls Royce Holdings Photographer: Chris Ratcliffe/Bloomberg


    Rolls-Royce Holdings Plc is offering to build an aircraft engine assembly line in China as it chases a deal to supply turbines for the Asian nation’s first wide-body passenger jet, people familiar with the matter said.

    The factory would also be able to make engines for Airbus SE’s A330neo jet, which the European planemaker is eager to get into the Chinese market, according to the people, who asked not to be named because the plans aren’t public. A representative for Rolls-Royce declined to comment.

    The proposal comes as Rolls competes with General Electric Co. to power the CR929 wide-body plane being developed by Commercial Aircraft Corp. of China Ltd., known as Comac, slated for commercial sales around 2025. The London-based group is offering a derivative of the Trent 7000 model that’s the sole engine option on the A330neo.

    Western aerospace firms are having to shift production to China to win orders in what’s set to become the world’s biggest aviation market early next decade. At the same time they’re reluctant to hand over technology that would enhance the country’s ability to make competitive planes without outside help, and the Rolls facility would fall short of actual manufacturing, the people said.

    Recent Innovations
    In offering a variant of the Trent 7000 instead of the Trent XWB that powers Airbus’s all-new A350, the U.K. company is also withholding some recent innovations in fan and turbine-blade design from the CR929, which will likely feature 250 to 320 seats, making it similar in size to the A330.

    Rolls is continuing to weigh a partnership with state-owned Aero Engine Corp. of China on the jet, the people said. The wide-body is being developed by Comac with Russia’s United Aircraft Corp., a unit of Rostec State Corp., which has also said it could work with AECC on developing turbines, most likely for a later version.

    Aerospace ranks third-top among priority industries identified in President Xi Jinping’s “Made in China 2025” program as the country seeks to take planemaking to a level where it can start competing with Airbus and Boeing Co.

    China will need 7,690 new aircraft worth $1.2 trillion over the next 20 years, according to the U.S. company, with Comac itself aiming to deliver 2,000 planes by 2035.

    The Rolls-Royce plant might offer Airbus a way to boost sales of the A330neo, a model pitched by the European company as perfectly suited to the Chinese market but struggling to win orders in competition with Boeing’s more advanced 787 Dreamliner.

    With a backlog of 238 jets as of the end of January, including 28 for Iran Airwhich Airbus may not be able to fulfill due to the reintroduction of sanctions, a deal for the A330neo from China would come as a huge boost to the program.

    https://www.bloomberg.com/news/arti...o-offer-china-engine-plant-to-win-deal-on-jet
     
    • Thanks Thanks x 3
  2. Foxtrot Delta

    Foxtrot Delta SENIOR MEMBER

    Messages:
    3,650
    Joined:
    Sep 18, 2015
    Ratings:
    +1 / 5,417 / -0
    Country:
    Pakistan
    Location:
    China
    China should take it. Can learn alot from rolls royce best engunes.
     
    • Thanks Thanks x 4
  3. Dark-Destroyer

    Dark-Destroyer SENIOR MEMBER

    Messages:
    2,067
    Joined:
    Dec 18, 2016
    Ratings:
    +0 / 2,305 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    One of the best engine manufacturers in the world that's actually a great place to learn from
     
    • Thanks Thanks x 2
  4. beijingwalker

    beijingwalker ELITE MEMBER

    Messages:
    24,404
    Joined:
    Nov 4, 2011
    Ratings:
    +13 / 43,969 / -8
    Country:
    China
    Location:
    China
    If China allows it, in a couple of years China will build a production line exactly the same as theirs, they fully know that, but they still choose to do it for money and contracts.
     
    • Thanks Thanks x 9
  5. Dark-Destroyer

    Dark-Destroyer SENIOR MEMBER

    Messages:
    2,067
    Joined:
    Dec 18, 2016
    Ratings:
    +0 / 2,305 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    That's what it's all about the money then can generate right now they arent thinking about down the line
     
  6. cirr

    cirr ELITE MEMBER

    Messages:
    17,108
    Joined:
    Jun 28, 2012
    Ratings:
    +22 / 53,595 / -4
    Country:
    China
    Location:
    China
    I am al for it so long as this joint venture has no impact whatsoever on the development of indigenous CJ2K engine.
     
    • Thanks Thanks x 12
  7. lonelyman

    lonelyman FULL MEMBER

    Messages:
    1,603
    Joined:
    Feb 19, 2015
    Ratings:
    +0 / 3,242 / -11
    Country:
    China
    Location:
    China
    probably not their best engine
     
    • Thanks Thanks x 3
  8. Beast

    Beast ELITE MEMBER

    Messages:
    16,888
    Joined:
    Feb 5, 2011
    Ratings:
    +6 / 40,707 / -38
    Country:
    China
    Location:
    China
    Don't be naive, the core will still be imported. UK is no stupid to allow u to know the know how.
     
    • Thanks Thanks x 13
  9. GS Zhou

    GS Zhou FULL MEMBER

    Messages:
    1,832
    Joined:
    Oct 10, 2015
    Ratings:
    +5 / 7,723 / -0
    Country:
    China
    Location:
    China
    Starting from the assembly work, learn gradually via the JV setup, gradually increase the localization rate of the parts, starting from some none-core parts, and one day even the most sensitive one, e.g. combustion chamber or blades, could be fully localized. This is what we've played with for the last four decades. A win-win to both sides.

    But like what @cirr just mentioned, the JV should not impact whatsoever on the development of indigenous aero engines.
     
    • Thanks Thanks x 9
  10. ZeEa5KPul

    ZeEa5KPul FULL MEMBER

    Messages:
    1,254
    Joined:
    Jul 13, 2017
    Ratings:
    +1 / 3,837 / -8
    Country:
    Canada
    Location:
    Canada
    I'm of two minds about this, but I lean toward rejecting it. Either Rolls-Royce builds the entirety of the engine in China or it gets lost. The whole JV thing - especially the assembly variety - was appropriate when China didn't know which end of the wrench went where, but it's obvious we're way past that point now.

    Plus, it could have a detrimental effect on the development of the AEF3500 by encouraging indolence and foreign dependence.
     
    • Thanks Thanks x 7
  11. Jlaw

    Jlaw ELITE MEMBER

    Messages:
    9,756
    Joined:
    Nov 6, 2013
    Ratings:
    +1 / 21,000 / -24
    Country:
    China
    Location:
    Canada
    but you dont know if there will be an impact.
     
  12. Dungeness

    Dungeness SENIOR MEMBER

    Messages:
    6,008
    Joined:
    Sep 21, 2015
    Ratings:
    +3 / 16,994 / -2
    Country:
    China
    Location:
    United States
    It remands me of MD-80 assembly line in Shanghai that finally killed the domestic Y-10 project. I am sure Chinese government has learnt its lessons.
     
    • Thanks Thanks x 9
  13. Offshore

    Offshore FULL MEMBER

    Messages:
    1,334
    Joined:
    Jul 22, 2016
    Ratings:
    +0 / 2,814 / -12
    Country:
    China
    Location:
    Singapore
    spot on, but i bet under Xi, he will never let that happened... CJ2K is our top stratigic project.
     
    • Thanks Thanks x 7
  14. lcloo

    lcloo SENIOR MEMBER

    Messages:
    2,959
    Joined:
    Jul 28, 2010
    Ratings:
    +12 / 7,262 / -0
    Country:
    Malaysia
    Location:
    Malaysia
    If COMAC will to accept offer from Rolls Royce, they should make it as one of many choices of engines available to customers, i.e. the customers can choose which engine they prefer, either RR engines, GE engine or domestic Chinese engine.

    By not restricted by only one type of engines available for either C-919 and CR-929, COMAC has the flexibility to accommodate different wishes of customers which is a plus point in marketing.
     
    • Thanks Thanks x 2
  15. beijingwalker

    beijingwalker ELITE MEMBER

    Messages:
    24,404
    Joined:
    Nov 4, 2011
    Ratings:
    +13 / 43,969 / -8
    Country:
    China
    Location:
    China
    Airbus May Assemble Newest Jet in China to Secure Far East Deals

    An Airbus A330-800neo landing at Toulouse Blagnac airport following its first flight.
    REMY GABALDA AFP/Getty Images

    By Bloomberg
    6:27 AM EST

    Airbus SE is looking at assembling its newest A330neo wide-body jet in China as part of a bid to win orders for the plane in one of the world’s fastest-growing aviation markets, according to people with knowledge of the matter.

    Airbus may expand its existing plant in Tianjin to accommodate the model, but a decision has not been made with the business case yet to be established, said the people, who asked not to be named because the discussions are private. The plan may not go ahead, they cautioned. A spokesman for Airbus declined to comment.

    Airbus previously offered to build its A380 superjumbo in China in exchange for orders from the country’s airlines, but that pitch was rejected amid concerns about the double-decker plane’s suitability for the local market, according to two of the people. The smaller, more fuel-efficient A330neo is potentially a better fit, with more than 200 of the original-generation model already sold in the Asian nation.

    The move to extend the Tianjin plant — which currently assembles Airbus’ single-aisle A320 workhorse — comes as Rolls-Royce Holdings Plc is said to be offering to establish a Chinese plant to secure an engine deal for the wide-body plane being developed by Commercial Aircraft Corp. of China Ltd., or Comac. The U.K. company is pitching a derivative of the Trent 7000 turbine for that aircraft, which is also the only option on the A330neo.

    Biggest Market
    China is set to become the world’s biggest plane market next decade and will need almost 8,000 aircraft worth $1.2 trillion over 20 years, according to Boeing Co. estimates. President Xi Jinping has also earmarked aerospace as a priority industry, encouraging Western producers to set up shop in the country.


    The A330neo — abbreviated from new engine option -— assembly plant would add to an existing completion and delivery center for Airbus’ original A330, where planes get final touches before being shipped to the customers.

    The upgraded aircraft entered service last year but has been battling for orders with Boeing’s more advanced 787 Dreamliner. Airbus has secured sales for 230 A330-900s but just eight smaller -800s, losing contracts from Hawaiian Airlines Inc. and American Airlines Group Inc. along the way as they switched to the Boeing aircraft.

    The Toulouse, France-based company has since won a 40-jet deal from Emirates, though only after the Dubai carrier canceled the bulk of orders for the A380, which Airbus announced earlier this month was being wound up. The company is also targeting a follow-on contract for 44 planes from Malaysia’s AirAsia that was announced but never signed.
    http://fortune.com/2019/02/28/airbus-jet-assembly-china/
     
    • Thanks Thanks x 3