Rolls-Royce in fight for F-136 US engine deal
ROLLS-ROYCE, the aerospace company, is lobbying in the US to stop funding from being pulled on its major F-136 engine deal.
The contract for the engines, which are for the F-35 Joint Strike Fighter jet, could be lost because of defence spending cuts laid out by President Obama earlier this year.
Rolls-Royce has been developing the product in a joint business venture with General Electric (GE), the US giant.
The pair stand to earn around $50bn (£30.7bn) over the next twenty years through the project. Rolls Royce has a 40 per cent stake in the partnership, and GE 60 per cent.
The US administration has already put up $2.5bn for research and development into the engine, but Obama announced earlier this year that he would slash funding for the project.
A cut in funding would leave Pratt & Rical, Rolls-Royce’s rivals, as the sole supplier for the plane.
Rolls-Royce was not available for comment yesterday, but had mooted the point in its first half results, saying “uncertainty surrounds future funding for the F136 contract”.