ROLLS-ROYCE OPENS NEW MACHINING
CENTER IN MISSISSIPPI

Pascagoula, MS - Rolls-Royce opened the doors today to a new machining center at its Propeller Center of Excellence in Pascagoula, Mississippi. The new facility, adjacent to the foundry, will improve manufacturing capabilities and production efficiency across a wide range of marine propellers and propulsors. Rolls-Royce has invested over $8 million in the local industrial base developing the facility.

The leading edge, 18,000 square foot facility will include 15,000 square feet of manufacturing space and house a new gantry milling machine. As a result, machining will be three times faster than the current rate. This will enhance the foundry strengths to include: design and custom build capabilities; and capacity for propellers ranging in size from 60 inches to 33 feet.

Currently the foundry manufactures propellers for US Navy nuclear aircraft carriers (CVN) and various commercial vessels. It also casts propeller blades for US Navy Destroyers (DDG) and US Navy Amphibious Transport Dock class (LPD) ships. The machine center is positioned to manufacture components for the large waterjets used on the Littoral Combat Ship.

“This new facility demonstrates our commitment to product quality and process improvement,” said Patrick J. Marolda, President of the Rolls-Royce naval marine business in North America. “We want to provide better products faster to our customers and are dedicated to maintaining our market leadership in quality and delivery. We have a long term relationship with the state of Mississippi and the city of Pascagoula, and are delighted to be increasing our presence and abilities here.”

"Enhancing this facility also underscores our commitment to the US," said James M. Guyette, President and CEO, Rolls-Royce North America.

United States Senator Trent Lott joined Rolls-Royce and other local dignitaries at the ribbon cutting 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. "I was pleased to sponsor the funding request in Congress for the Propeller Center of Excellence. 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 Gene Taylor added "I would like to thank Rolls-Royce for its continued investment in Mississippi and Jackson County. This expansion will only build upon the world-class shipbuilding industry in South Mississippi.

“The completion of the Pascagoula Foundry expansion highlights the ever-increasing commitment of Rolls-Royce to its U.S. business strategy”, said George Freeland, Jr., Executive Director, Jackson County Economic Development Foundation, Inc. “We regard Rolls-Royce to be one of this community's premier corporate citizens and as such are committed to partnering with them to further their expanding operations in south Mississippi”.

Earlier this month, Rolls-Royce announced that it had selected the National Aeronautics And Space Administration's John C. Stennis Space Center in Mississippi as the preferred site for relocation of its large engines outdoor test facility from the UK.

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Rolls-Royce operates in four global markets - civil aerospace, defence 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. 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 70 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of which 21,000 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.

The large installed base of engines generates demand for the provision of services. A key element of the company's strategy is to maximize services revenues, which have increased by 60 per cent over the past five years, by the provision of a comprehensive portfolio of services.

Annual sales total nearly £6 billion, of which 55 per cent are services revenues. The order book is more than £21 billion, which, together with demand for services, provides visibility as to future activity levels.