January 6, 2004
Rolls-Royce Naval Marine selects Jackson County, Mississippi for Foundry expansion; Enhances Capability in US

On January 6th, 2004, Rolls-Royce Naval Marine Inc. broke new ground for the expansion of its foundry in Pascagoula, Mississippi at its formal "Breaking Ground" Ceremony attended by Mississippi Senator Trent Lott, Representative Gene Taylor and Rolls-Royce and other local dignitaries. Pictured from left to right are:
1) George L. Freeland, Jr., Executive Director, Jackson County Economic Development Foundation, Inc.
2) Peter Lapp, Director of Operations, Rolls-Royce Naval Marine, Inc.
3) Patrick J. Marolda, President, Naval Marine, Rolls-Royce Naval Marine Inc.
4) James M. Guyette, President & CEO, Rolls-Royce North America Inc.
5) Jon Sclease, Plant Superintendent, Rolls-Royce Naval Marine
6) Senator Trent Lott
7) Congressman Gene Taylor
8) Jerry St. Pe, Chairman, Jackson County Economic Development Foundation, Inc.
9) Joe Cole, Mayor, City of Pascagoula
10) Mike Ryan, Executive Vice President, Government Business, Rolls-Royce North America
11) John McKay, President, Jackson County Board of Supervisors
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Pascagoula, MS - Rolls-Royce Naval Marine Inc. broke ground today for the expansion of its foundry in Pascagoula, Mississippi. The new facility will enhance manufacturing capabilities and improve production efficiency across a range of Marine propellers and submarine propulsors.
"The expansion of this facility demonstrates our commitment to our customers," said Patrick J. Marolda, President, Rolls-Royce Naval Marine Inc. "We wanted to provide better products faster - to be better able to compete - and upgrading and streamlining our manufacturing in this facility allows us to do just that." "Rolls-Royce Naval Marine is a long-time friend of Mississippi and of Pascagoula, and we're delighted to be increasing our presence here," continued Marolda.
The leading-edge, 18,000 square foot facility will have a number of unique features. It will encompass 15,000 square feet of manufacturing space and will house a 10 meter gantry milling machine able to machine propellers up to eight meters in diameter. Together, this machine and this space will dramatically accelerate the machining process -- three times faster than the current rate.
"Growing this facility also underscores our commitment to the US," added James M. Guyette, President and CEO, Rolls-Royce North America. "Rolls-Royce is celebrating its 100th anniversary this year. We've been in the US for 98 of those years and intend to be here for at least 100 more."
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Senator Lott, Pat Marolda, Peter Lapp are standing in front a high tolerance five blade, fixed pitch propeller with an impressive diameter of 21 ft and weighing in at approximately 60,000 lbs. when finished. This is one of the four propellers to be delivered to the US Navy nuclear aircraft carrier USS George H. W. Bush (CVN 77).
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Mississippi Senator Trent Lott along with Representative Gene Taylor joined Rolls-Royce and other local dignitaries at the ground breaking ceremony.
"Mississippi is proud to have Rolls-Royce as an economic partner, and we certainly welcome this investment in our state and our workforce," said Senator Lott. "This expansion will sustain quality, high-skilled jobs in Jackson County, and I know the employees here will continue their long tradition of providing world-class marine products for Rolls-Royce customers throughout the globe."
Congressman Taylor said "I too would like to thank Rolls-Royce for their continued support of Jackson County. This project clearly demonstrates confidence in the future and is an endorsement of the highest caliber. The expansion will add a significant economic presence to the area where we have quality employees and dedicated citizens committed to this industry."
"Jackson County, Mississippi will continue to commit its economic development resources to support Rolls-Royce Naval Marine's long-term business strategy for the Pascagoula foundry," said George Freeland, Jr., Executive Director, Jackson County Economic Development Foundation. "We are fortunate to have Rolls-Royce Naval Marine as part of the fabric of our corporate community and we intend to foster this partnership that has helped to produce this expansion."
Currently the foundry manufactures propellers for the US Navy nuclear aircraft carrier (CVN) and various commercial vessels. It also casts propeller blades for US Navy Destroyers (DDG) and US Navy Amphibious Transport Dock class (LPD). Foundry strengths include: design and custom build capabilities; and capacity for propellers ranging in size from 60 inches to 33 feet.
Corporate note to editors:
Rolls-Royce plc operates in four global markets - civil aerospace, defense aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.
The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. As a result, engine deliveries have grown and the company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.
Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 36,000 people, of which 22,000 are in the UK. Forty per cent of its employees are based outside the UK - including 5,000 in the rest of Europe and 8,000 in North America.
Most of the engines in service will have operational lives of 25 years or more, generating an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximize aftermarket revenues, which have increased by 60 per cent over the past five years due to the development of a comprehensive services capability.
Annual sales total nearly $9 billion, of which 50 per cent currently comes from aftermarket services. The order book stands at more than $25 billion, which, together with aftermarket demand, provides visibility as to future activity levels.
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Copyright 2005, JCEDF, Inc.
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