Rolls-Royce in $2bn engine orders

UK engineering firm Rolls-Royce says it has won orders to make $2bn(£1.2bn) of aircraft engines to power Airbus planes for Air China and Ethiopian Airlines.

The orders were announced on the first day of the Dubai Airshow on Sunday.

The $1.5bn Air China order involves providing Trent 700 engines to power 20 A330 aircraft that will be delivered from 2011.

And the $480m Ethiopian order covers Trent XWB engines for 12 A350-900 XWB planes that will begin service in 2017.

It came after Ethiopian Airlines announced a $3bn aircraft order with Airbus.

The airline made an initial draft request for the dozen extra-wide bodied A350-900s in July and confirmed the deal at the air show, the biggest in the Middle East.

Best-selling engines

Airlines have been hit hard during the recession, so the order for engines is welcome news for Rolls-Royce, which has factories in Derby and Bristol making engines, and one in Sunderland making aero-engine components.

In addition, the Rolls-Royce Inchinnan factory, which opened in October 2004 close to Glasgow Airport, also manufactures aeroplane engine components.

The Ethiopian order means Rolls-Royce has sold more than 1,000 of its best-selling XWB engines.

The firm has said the XWB is the most fuel efficient and environmentally sensitive large engine design on the market, with fuel efficiency ratings 28% higher than pre-Trent generation engines.

In the summer the firm said it was on track to meet its full-year financial targets, but warned that delays on the Airbus A380 and Boeing 787 wide-body programmes had added an element of uncertainty.

However, the delays have created more demand for existing wide-body products, where it has a strong position.

Economy has improved: Prime Minister

By Shamim-ur-Rahman
Sunday, 15 Nov, 2009

KARACHI: Recognising the need for bringing down the cost of doing business in Pakistan Prime Minister Yousuf Raza Gilani said on Saturday that the only prescription to survive in the existing tough situation is to become more competitive, quality conscious and innovative.

Speaking at the 33rd FPCCI Export Trophy ceremony held at the Governor House he claimed that the economic health of the country had improved despite international and domestic adversities. He exhorted the business community to compete in the international market effectively, while keeping these principles in their mind.

Dr Ishrat-ul-Ebad Khan, Governor Sindh; Syed Qaim Ali Shah, Chief Minister; Makhdoom Amin Fahim, Minister for Commerce; Sultan Ahmad Chawla, President FPCCI; Syed Mohibullah Shah, CEO, TDAP were also present.Prime Minister Gilani said the country’s real GDP growth was likely to remain close to the target of 3.3 per cent during the fiscal year 2009-10 and took pride in the surge in foreign exchange reserves that have risen from $6 billion to $14.7 billion.

As a result of these positive signs, he said, Pakistan’s sovereign rating has improved and business sentiments are getting better. Remittances from overseas Pakistanis have hit a record mark of $800 million in October, 2009.

Mr Gilani was of the view that the issues like falling exports competitiveness, lack of sophistication, diversification of products and markets stem from structural weaknesses inherent in the economy and these have been addressed through a medium-term plan called, ‘Strategic Trade Policy Framework (STPF) 2009-12.’

The STPF provides assurance for continuation of trade policy for three years and the businesses can plan their production and export orders accordingly, he added.

The important policy initiatives under the strategy are certainty for capital cost, reliability of electricity supply at mutually agreed time by the electricity distribution companies and insurance cover for the visiting buyers.

The policy has been set in motion and the initiatives are at various stages of implementation, Gilani added pointing out that ministry of commerce as part of initiative has recently provided Rs27.3 million from Export Development Fund (EDF) for opening of FPCCI offices at China and Brussels for better export marketing.

Similarly, MoC has provided Rs9.380 million from EDF to FPCCI for installation of video conferencing facility at FPCCI offices at Karachi, Lahore, Islamabad, Quetta and Peshawar.

Mr Gilani also reminded the industrialists that a comprehensive Textile Policy 2009-14 has also been announced to revive the textile sector through Textile Investment Support Fund of Rs40 billion.

The textile policy envisages developing international and domestic demand driven capabilities, infrastructure improvement, skill development, standards for international compliance, increasing productivity, improving quality and ensuring optimum utilisation of resources.

The policy aims at achieving textile exports to reach a target of $25 billion in five years and would increase employment by 100 per cent.

The policy focuses on investment of $8 billion by the private sector towards increased capacities while government would invest in infrastructure, skill development, and marketing and information technology.

Acknowledging the support extended by the business community at the time of national disasters Mr Gilani commended its fund raising movement for displaced persons and said that with the industry’s efforts ‘we would be better positioned to address the core issues of poverty alleviation and job creation in the near future.’

Underscoring the importance of improved law and order situation he said the government was taking all measures to bring normality to the situation so that the business community has more confidence. Lots of investment is coming into Pakistan and it reposes confidence in the business-friendly policies of Pakistan, he added.

He also claimed that Friends of Democratic Pakistan had accepted proposals for reconstruction of Swat and Malakand and also for projects to boost energy production in the country.