Rolls-Royce in $1bn Air China engine deal to supply Trent 1000 engines for passenger jets
Engine manufacturer Rolls-Royce has extended its deals with Air China, after being selected to supply its Trent 1000 engines for 15 new Boeing 787-9 Dreamliner passenger jets.
According to the British technology firm, the new contract is worth $1bn (£675m).
Previously, Rolls-Royce supplied the airline with Trent 700 engines for 49 Airbus A330 aircraft, with a further four to be delivered. It has also agreed to supply the Chinese flag carrier with Trent XWB engines for 10 Airbus A350XWB aircraft.
John Rishton, Rolls-Royce chief executive, said: “This is a significant selection by a valued customer and we look forward to continuing to strengthen our relationship with Air China. The Trent 1000 offers operators outstanding lifetime fuel burn performance and reliability on the Boeing 787 Dreamliner.”
Last week, Rolls-Royce announced that it would cut around 220 jobs in its Scottish businesses over the next two years, as part of a restructuring.
Revealing the strategy in November last year, the company said it was planning to cut 2,600 jobs worldwide over an 18-month period.
According to the firm, the restructure will cost £120m in 2015 and 2016, but will eventually result in annual cost benefits of £80m.
Rolls-Royce has struggled in the past six months, and was forced to issue a profit warning last October, in which it blamed a strong pound, worsening economic conditions in Europe and sanctions on Russia for hitting revenues.
Meanwhile, in February the company was dragged into the ongoing Petrobras scandal in Brazil. Rolls-Royce was named in court documents, accused of paying bribes to Petrobras, which it supplied with drilling rigs.
The firm also posted a sales drop of six per cent for 2014, the first time sales declined at the group in a decade.
Shares in Rolls-Royce were up by 1.48 per cent yesterday.