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Strong demand is expected in the next 10 years for the Trent XWB powering Airbus A350s.
With demand for widebody engine services climbing, Rolls-Royce has outlined plans to invest in additional engine assembly, test and shop visit capacity at two European sites servicing its large civil engines.
In March, the engine manufacturer announced plans to invest in its network capacity to the tune of £55 million ($70 million) to expand facilities in Germany and the UK. The investment will prioritize its historic headquarters in Derby, England, followed by its facility in Dahlewitz, 27 km (17 mi.) south of Berlin.
In Derby, Rolls-Royce plans to boost engine capacity, with a plan to deliver over 40% more engines annually from 2025 in comparison with delivery averages over the past 10 years. It also aims to increase service capacity for its Trent engines, which are set to generate high demand over the next 10 years, particularly from operators in the Asia-Pacific region and Western Europe, according to the Aviation Week Network’s 2024 Commercial Aviation Fleet & MRO Forecast.
At its site in Germany, which has operated since 1995, Rolls-Royce is targeting the utilization of existing engine test capability for large civil engines to support near-term service demand. Starting in 2026, it intends to transition to the assembly and testing of Trent XWB-84 engines, one of two Trent XWB powerplant options for Airbus A350 family. In a competitive market including the Trent 1000- and GE GEnx-powered Boeing 787, the A350 is projected to have a compound annual growth rate of 10% from this year through 2033 and power more than 1,500 in-service aircraft by then.
Capacity ramp-ups are expected to spur the creation of about 300 new jobs in front-line operations, the engine-maker says. About half of the investment and two-thirds of the jobs would be based in Derby.
This funding plan follows Rolls-Royce’s announcement in February that it intends to invest around £1 billion in a continuous improvement program for the Trent engine series. The multiyear investment is targeting the increase of time on wing for Trent XWB-97 engines on the A350-1000 by as much as 50%, following durability concerns expressed by Dubai-based Emirates, which operates Rolls-Royce engines in harsh environments.
During its annual earnings call in February, Rolls-Royce CEO Tufan Erginbilgic stated that the investments would focus on developing new blade coatings for the engine’s high-pressure turbine blades.
The manufacturer had previously projected increased demand for large civil engines, comprising the Trent family and to a smaller extent the RB211. Last November at its annual Capital Markets Day, the company forecast a 7-9% annual increase of Rolls-Royce-powered aircraft in service for the remainder of the decade.
Aftermarket momentum has continued into this year, with the segment widely credited as playing a key role in reviving Rolls-Royce’s financial performance. Civil aerospace accounts for about half of Rolls’ annual sales, which totaled £4.6 billion last year. The aftermarket accounted for 63% of this in 2023. In 2019, aftermarket contributions stood at approximately 60%; 10 years ago, they were 54%.
Rolls-Royce anticipates strong market demand in 2024 and expects to deliver 500-550 engines this year, around half of them civil widebody powerplants, with a target of 450-500 large engine overhauls this year.
Aftermarket network partners are also responding to demand. Those expanding capacity include N3 Engine Overhaul Services, a joint venture between Rolls-Royce and Lufthansa Technik that specializes in Trent 500, 700, 900, 1000 and XWB repairs and overhauls. The joint venture broke ground in February on a planned €150 million expansion of its site in Arnstadt, Germany.
The site’s production capacity is set to be doubled by around 19,700 ft.², and its workforce is planned to increase to more than 1,100 in the near future to accommodate growing demand for Trent engine overhauls. Last year, N3 conducted about 160 engine overhauls; it expects to perform nearly 200 in 2024. In the longer term, as part of a company strategy launched in 2022, it aims to increase this to 250 engines annually.
