Roll-Royce technology sale

22 February 2002


UK • GAS TURBINES UK aero-derivative manufacturer Rolls-Royce has signed a long term technology deal with Alstom Power that will enable Alstom to make use of R-R aero engine technology in the development of its heavy duty gas turbine range. Alstom see the R-R technology as a major contributor in fulfilling its ambition to develop and offer highly competitive heavy duty generators, the largest segment of the global power generation market. Alstom does not currently offer an aeroderivative product. They expect to improve efficiency, output, and durability. It should also contribute to 'economies of scale' in the company's R & D spending. R-R will also provide engineers to assist Alstom in the application of technology on specific development projects, a logical continuation of the work being done by a joint design team already in existence at Alstom's Derby offices working on the GT24/26 turbine.

Specific financial details have not been disclosed but Rolls-Royce will be compensated for initial access to the technology by payments spread over a number of years. In addition, royalties will be paid on future product sales.

The arrangement between the companies is that each receives full access to appropriate technology of the other, combining basic technology on several projects simultaneously. R-R gains for instance by access to Alstom's R & D at the heavy duty end, while Alstom gains access to R-R's pre-eminence in edge aerodynamics.

•Mitsui Babcock has acquired the nuclear field services business of Rolls-Royce Nuclear Engineering Services Ltd, as part of the company's long term strategy to grow and maintain what it sees as its position as the UK's leading provider of services to nuclear plant.

The acquisition strengthens Mitsui Babcock's existing capability in the provision of plant maintenance and decommissioning and decontamination services to civil and defence clients in the UK. RRNESL will continue to offer components engineering and design and build services which have not passed to Mitsui Babcock under the deal.

The deal, which includes the takeover of existing RRNESL contracts for clients such as UKAEA, BNFL Magnox and British Energy also includes the field services base in Gateshead, Tyne and Wear. Contracts at locations such as Dounreay and Devonport will be 'seamlessly integrated into the business operations of Mitsui Babcock'.



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