FLUG REVUE September 2005: V2500 to be build in Germany?

September 2005

V2500 TO BE BUILT IN DAHLEWITZ

By Patrick Hoeveler

Rolls-Royce wants to concentrate its two-shaft civil engine activities in Dahlewitz. This could mean that an extra 150 engines could be built in Germany per year. If the European final assembly line for the V2500 engine were to be relocated from Derby to Dahlewitz near Berlin, as is currently being discussed in the company, it would be a major success for (Rolls-Royce) Deutschland. The parent company in the United Kingdom needs capacity for the Trent family and views the probable relocation, which would be completed by the end of next year, as the “preferred option”. However, discussions are still under way with the staff and unions. But according to information from Derby this would not mean a reduction in the workforce there, as capacity becoming free would then be absorbed by production of the big three-shaft engines.

The International Air Engines (IAE) V2500 engine is currently produced by Pratt & Whitney in Middletown, Connecticut, and by Rolls-Royce in Derby. To date IAE has delivered over 2,600 units. The 3,000 mark appears to be within reach. For example, only recently Hungarian no-frills airline Whizz Air became a new customer, choosing the engine as the powerplant for up to 24 aircraft in the Airbus A320 family. The market strategists in East Hartford are expecting orders of the V2500 to total around 300 for the year. Arch-rival CFM expects sales in the region of 1100 CFM56 engines in the same timeframe. However, the larger part of these will be for the Boeing 737. According to IAE the rolling average on the A320 family for the past eight years is 56 per cent.

IAE wants to increase their advantages and is currently working on a reduction of operating costs by up to 20 per cent. The “V2500 Select” initiative combines technical improvements with maintenance programs specially tailored to individual customers. With optimized aerodynamics and increased durability of the high-pressure compressor and the turbines the engineers aim to achieve a one per cent reduction in fuel consumption and a 20 per cent longer time on-wing for the engines to be produced from 2008 onwards.

“Centre of competence”

It looks as if final assembly of the V2500 will be moving to Germany. FLUG REVUE questioned Axel Arendt, Chairman of Rolls-Royce Deutschland, about it.

FLUG REVUE: What are the critical reasons behind the decision to relocate production?

Arendt: This action is necessary because of the need to create assembly and test capacity in Derby for future production of the Trent 1000 engine for the Boeing 787 Dreamliner. Dahlewitz is the centre of competence for two-shaft engines in the Rolls-Royce Group. The transfer of Rolls-Royce's share of the work on this extremely successful programme from Derby to Dahlewitz is not just evidence of a consistently pursued corporate strategy of building up international centres of competence, but it is also a mark of recognition of the high standard of performance of the two German sites.

FR: What changes in infrastructure and personnel will be necessary in Dahlewitz?

Arendt: No doubt there will be a need for minor infrastructure modifications in order to integrate the V2500 into the existing assembly line. We shall also of course be adapting our test rigs to cope with the engine that generates up to 147kN of thrust. Over the coming twelve months we shall be taking on 200 highly skilled development and service engineers, technical buyers, logistics experts, planners and engine mechanics at the Dahlewitz location. We have already begun recruiting new staff.

FR: When will the first V2500 be completed in Dahlewitz?

Arendt: We expect to have advanced sufficiently far with the transfer to be able to commence production of V2500 engines in around twelve months.

FR: What production rates do you expect?

Arendt: If we consider that about 300 engines of this type are produced per year, then half of that figure will undergo final assembly in Dahlewitz in the future.

FR: What will the decision mean for Rolls-Royce Deutschland and for Germany in general as a technology location?

Arendt: The jobs that are created here underline once again the permanence of our commitment to eastern Germany especially. The setting up and expansion of our Dahlewitz site, combined with the great market success of the “Made in Brandenburg” Rolls-Royce engines and the recent decisions to set up a joint maintenance centre with Lufthansa in Erfurt, Thuringia and to establish a university technology centre at the Brandenburg Technical University of Cottbus are all expressions of our trust in this region.

From page 87 of FLUG REVUE 9/2005

Last updated 18 August 2005

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