7,000 jobs to be saved as Rolls-Royce invests £150m

AROUND 7,000 jobs have been secured under plans by RollsRoyce to plough £150m into its UK facilities.

The aircraft engine maker is building a new test site at its main base in Derby and ditched plans to close another site, as it bids to double production.

It follows negotiations with workers who are understood to have accepted the deal while acknowledging that more work must be done abroad. They will help train German staff.

Rolls hopes to make 600 engines per year by the 2020s, compared to 300 now, as it tries to turn itself around after a year of tumbling profits. It has around £80bn of orders.

Unions hailed the investment plans, saying they effectively secured Rolls’ UK manufacturing base for the next 20 years.

Unite national officer Ian Waddell said: ‘There were real fears that future investment could go overseas, but thanks to the skills, capabilities and adaptability of Rolls-Royce’s UK workforce, thousands of jobs have been secured.’ Rolls has agreed not to make compulsory redundancies at its three East Midlands sites for five years. It will keep open an engine parts facility in Derby, saving around 170 jobs. It is also investing in its engine repair facility in the town, as well as other manufacturing facilities.

Greg Clark, the business secretary, was delighted and said: ‘These new facilities are good news for Rolls-Royce, its UK suppliers and our economy.’

Rolls is trying to turn itself around after profits fell last year, particularly in its marine division. The company posted a record £4bn loss mainly due to the impact of the fall in the pound on its hedging programme.

Chief executive Warren East has made increasing production key to the turnaround plan, stripping out senior managers and reducing the time it takes to produce engines.