Rolls-Royce to Partner with Chinese Reactor Vendor CGN
Wed, 18 June 2014
Rolls-Royce has today signed an important memorandum of understanding (MoU) with CGN, the Chinese nuclear reactor vendor. The agreement will see Rolls-Royce cooperate more closely with CGN in the field of civil nuclear power, in China, the UK and other overseas markets.
Jason Smith, President Nuclear, Rolls-Royce said: "China represents one of the world's largest civil nuclear markets in which Rolls-Royce has been supplying safety-critical technology and solutions for 20 years.
"I am delighted that we have built a partnership with CGN based on mutual trust. I look forward to exploring how we can broaden our work together in our domestic and international markets."
Energy and Business Minister Michael Fallon said: "This deal brings a real boost to the UK economy. Closer cooperation between the UK and China could be worth hundreds of millions of pounds to British businesses. We are making the most of Britain's low carbon energy to maximise jobs and business opportunities, get the best deal for customers and reduce our reliance on expensive foreign oil and gas imports."
The MoU will explore possible collaboration in areas such as engineering support, provision of components and systems, emergency diesel generators, supply chain management and instrumentation and control technology.
Rolls-Royce has significant nuclear expertise, including providing advice to governments and operators, supply chain management and manufacturing and technical engineering support. Today, Rolls-Royce supplies safety-critical instrumentation and control technology to more than 70 per cent of nuclear reactors in operation or under construction in China and Emergency Diesel Generators to almost 40 per cent.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
2. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems (RRPS). On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings plc. On 16 April 2014, the valuation was agreed and the transaction is expected to complete within the coming months, subject to the usual regulatory approvals. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
4. Our business is focused on the 4Cs:
· Customer - placing the customer at the heart of our business
· Concentration - deciding where to grow and where not to
· Cost - continually looking to increase efficiency
· Cash - improving financial performance.
5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.
9. Rolls-Royce has almost 2000 employees across Greater China, including joint ventures. China has become a key market, supply chain partner and manufacturing location for the Group.
10. China represents one of the world's biggest nuclear markets with 21 reactors in operation, 28 currently under construction and further reactors planned.
11. Rolls-Royce has supplied Instrumentation and Control (I&C) systems and specific instrumentation since 1994 when the Qinshan and Daya Bay nuclear power plants were opened.
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This information is provided by RNS