Rolls-Royce to build new factory in Scotland
23 April 2002
Rolls-Royce plc is to replace its existing factory at Hillington, near Glasgow, with a new facility in the West of Scotland. A number of sites are being considered and a choice will be made by the end of May.
This decision follows a review, announced last November, and will safeguard up to 1,000 jobs in the West of Scotland. Hillington is an old factory dating back to the 1940s and is in need of substantial investment. Rolls-Royce says a new factory on a greenfield site will lead to a substantial reduction in overhead costs, improvements in productivity and will secure employment for the future.
Construction of the new facility will begin this summer and the project will take three years to complete. The transfer of the work from Hillington will begin in spring 2003 and will be completed by the summer of 2005. The total cost of the new factory and the transfer of work will be around Ј85 million.
Royan Anthony, Managing Director - Compressor Systems, for Rolls-Royce, said: "This Ј85 million project is a demonstration of the company's commitment to Scotland and a tribute to the skills, experience and commitment of our workforce at Hillington.
"Hillington is an old plant and it is not suitable for the modern manufacturing systems we need to employ to remain competitive. We looked at a number of alternative locations for a new facility, including some overseas. The skills, experience and commitment of our Scottish workforce were important factors in our decision to remain here."
Once the transition to the new factory has been completed, Rolls-Royce will leave the Hillington facility.
The Compressor Systems business of Rolls-Royce manufactures components which go into the majority of the company's gas turbines which are used in the civil aerospace, defence, marine and energy markets.
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