Rolls Royce

[conyoviejo]

Devastating news for the workforce and local areas. Closing the fan blade down and Selling out to Singapore. Phookin disgusting .

https://www.burnleyexpress.net/business ... ns-2953352

[TommyJohnson]

The aerospace industry has been hit the worst I think ?

I'm very lucky that my company have been in a position to take more on during all this and we never closed or furloughed any staff and are actually turning over more money. Most industries are getting rid of staff each week.

[Burnley1989]

I think it’s the news everyone expected unfortunately.

[tim_noone]

I think it’s the news everyone expected unfortunately.

Tbh... people thought ghyll brow would close first.

[Stproc]

This has been in their plans for years. I left 4 years ago and we had been planning for this before then. The Ghyll factory basically makes old style blades which are mainly spares for existing engines. Unfortunately I would imagine the reduction in aircraft flying will have accelerated the demise of these older aircraft and therefore the need for spares. Sad to see though as there are some good skilled jobs to be lost.

[Burnley1989]

I’ve worked at almost all the sites in the North over the last 4 years although not directly employed, it is a great shame. I’ll not put my opinion forward at the minute as these are people’s livelihoods and I’m sure there will be posters on here that will be losing there jobs. Best of luck to everyone, I’ve been on the road this week visiting manufacturing facilities and was only saying to my boss this morning that the common theme from businesses I’ve visited has been 30-40% job cuts.

[clarethomer]

Terrible news and I have family potentially impacted by this.

The employees were really grateful to find this out through the press and our local MP before being told themselves.

Given the aerospace industry is not operating anywhere near normal capacity it doesn't pay Rolls to have planes on the ground as I understand it.

This pandemic is going to take more business casualties before it's finished.

[conyoviejo]

This has been in their plans for years. I left 4 years ago and we had been planning for this before then. The Ghyll factory basically makes old style blades which are mainly spares for existing engines. Unfortunately I would imagine the reduction in aircraft flying will have accelerated the demise of these older aircraft and therefore the need for spares. Sad to see though as there are some good skilled jobs to be lost.

Daft as it seems,they are getting rid of the wide chord fan blade but keeping on the old style blade making.

[bodge]

This could devastate the Kelbrook economy as well as i believe Euravia do a lot of work for Rolls.

A real blow to the area this news.

[bfcjg]

Terrible.

[Burnley1989]

This could devastate the Kelbrook economy as well as i believe Euravia do a lot of work for Rolls.

A real blow to the area this news.

Weston’s making loads of redundancies, who are also very local

[Jakubclaret]

I explained all this to lowbankclaret on the covid-19 thread which was locked that the work was going to Singapore but it fell on deaf ears, a blindman entrenched in a deep dark cave could see what was going to happen.

[cricketfieldclarets]

This has been in their plans for years. I left 4 years ago and we had been planning for this before then. The Ghyll factory basically makes old style blades which are mainly spares for existing engines. Unfortunately I would imagine the reduction in aircraft flying will have accelerated the demise of these older aircraft and therefore the need for spares. Sad to see though as there are some good skilled jobs to be lost.

Lots of companies using the current pandemic as an excuse to make decisions they previously couldn’t or wouldn’t.

[conyoviejo]

I explained all this to lowbankclaret on the covid-19 thread which was locked that the work was going to Singapore but it fell on deaf ears, a blindman entrenched in a deep dark cave could see what was going to happen.

Yes and what makes it worse is the Rolls lads trained the phookers up to take over their jobs.
I said at the time what would happen,but all some of them could see was a free expenses paid holiday with as much sh@gging thrown in for free.

[Burnley1989]

It would have happened anyway, they weren’t going to invest that sort of money without it being the plan.

I remember my mate being oined by a few older union types when he was early 20’s for going over.

[conyoviejo]

It would have happened anyway, they weren’t going to invest that sort of money without it being the plan.

I remember my mate being oined by a few older union types when he was early 20’s for going over.

A lot of lads refused to go over to learn them the jobs as they could see what was coming so long ago.

[pureclaret]

shame for the town

[basil6345789]

Globalisation

[Billy Balfour]

Globalisation is just one of those words that's thrown around in order to make it sound like this kind of thing is a modern concept. It's been with us in one form or another for decades and the phrase 'globalisation' was first coined back in 1870. Take a look around our own East Lancs area at all the empty mills etc. They weren't closed down in the last decade.

Companies will always do what they think is best for their shareholders and there's no loyalty when it comes to selling their own workforce down the road.

[Herts Clarets]

5.4bn loss in 6 months.....

https://www.bbc.co.uk/news/business-53929215

[MT03ALG]

Has there been any news issued about the future of the Rolls Royce Sports Ground and/or Rolls Royce Club in Barnoldswick ?

[conyoviejo]

Has there been any news issued about the future of the Rolls Royce Sports Ground and/or Rolls Royce Club in Barnoldswick ?

No..Why should there be? Rolls isn't closing down yet.

[Lowbankclaret]

I explained all this to lowbankclaret on the covid-19 thread which was locked that the work was going to Singapore but it fell on deaf ears, a blindman entrenched in a deep dark cave could see what was going to happen.

Yes you did.
I was hoping the company would understand you need to keep your IP manufacturing in the UK. Company is making a massive mistake losing its knowledge like this.
I have a lot of friends who will be impacted by this. It’s a sad day.

[Lowbankclaret]

Daft as it seems,they are getting rid of the wide chord fan blade but keeping on the old style blade making.

No one else could make the Honeycomb Fan blades, each one is hand made and individual. Very old school engineering.

[tim_noone]

No..Why should there be? Rolls isn't closing down yet.

Pack of cards effect Con. Contrary to what others say I can see Houses being built on a desirable location. Not in my lifetime though.

[Billy Balfour]

Pack of cards effect Con. Contrary to what others say I can see Houses being built on a desirable location. Not in my lifetime though.

Yes, it will be a long time. Desirable new-builds locations require desirable jobs or at least good transport links to them.

[Bigvince]

Barnoldswick will retain the manufacture of honeycomb fan blades for spares, the Trent 700, and fans for the joint strike fighter, all the newer Trent fan blades will be moved to Singapore, the decision on front bearing housings and other parts has yet to be made, I fear these will be moved to Derby where there is ample capacity!
This is the beginning of the end for Barnoldswick! The smaller the site the more vulnerable it is. This is indeed a worrying time for my ex colleagues and many friends at Rolls Royce

[conyoviejo]

No one else could make the Honeycomb Fan blades, each one is hand made and individual. Very old school engineering.

I worked on the honeycomb centre when it first started.

[conyoviejo]

Pack of cards effect Con. Contrary to what others say I can see Houses being built on a desirable location. Not in my lifetime though.

Yes,such a shame if that happens. I spent many a hour on the pitch and putt course at the back .

[tim_noone]

Yes, it will be a long time. Desirable new-builds locations require desirable jobs or at least good transport links to them.

Residents objected to building houses on the farmers field who wanted to sell to developers facing the locks... The clubhouse is in an ideal spot. Transport links to leeds and Manchester.

[tim_noone]

Yes,such a shame if that happens. I spent many a hour on the pitch and putt course at the back .

My house overlooked it.

[cricketfieldclarets]

Yes, it will be a long time. Desirable new-builds locations require desirable jobs or at least good transport links to them.

With the increase in wfh that may change too. With people in high pad jobs wanting to relocate from the city and smog.

[Cirrus_Minor]

This is terrible news. I worked for Rolls Royce (actually started 50 years ago ) and left there in 1984. The site had more than 3 thousand employees in 3 factories and was at the forefront of the development of many civil engines including famously the RB211 engine and was miles ahead of anyone in the world with some of the engineering technology.

More and more work was shifted to the parent site at Derby and I was always expecting the site to become less viable as the workforce reduced, which is one of the reasons I left. A lot of the technical stuff is actually now done in Germany.

In fairness it has managed to keep going, mainly due to the wide chord fan blade technology and compressor blades manufacture on the site. But this news is devastating and I believe is blatantly using the pandemic as an excuse to shift the work to exploit cheaper labour in abroad. I fear now for this historic factory and the workers who have kept it going.

[Billy Balfour]

With the increase in wfh that may change too. With people in high pad jobs wanting to relocate from the city and smog.

Barlick is still on 56K dial-up.

Joking aside. Closure plan announce yesterday, the day before they announce their loses. Probably done to stop the share price from tanking. Shares usually bounce, or at least hold their own, whenever job loses and closures are announced.

[ElectroClaret]

... including famously the RB211 engine...

Cirrus... Is it true the "RB" stood for Rolls Barnoldswick?
That's always been the understanding, I think.

[Cirrus_Minor]

Cirrus... Is it true the "RB" stood for Rolls Barnoldswick?
That's always been the understanding, I think.

Indeed it is.

[cricketfieldclarets]

Barlick is still on 56K dial-up.

Joking aside. Closure plan announce yesterday, the day before they announce their loses. Probably done to stop the share price from tanking. Shares usually bounce, or at least hold their own, whenever job loses and closures are announced.

[Billy Balfour]

I know, Cricket. I do follow the markets and your post proves my point. RR shares haven't tanked on the back of their latest loses announcement.

[cricketfieldclarets]

I know, Cricket. I do follow the markets and your post proves my point. RR shares haven't tanked on the back of their latest loses announcement.

Thats why I posted, was agreeing with you.

[Billy Balfour]

Thats why I posted, was agreeing with you.

Sorry about that. I wrongly presumed that you were inferring they had tanked.

[dandeclaret]

This is terrible news. I worked for Rolls Royce (actually started 50 years ago ) and left there in 1984. The site had more than 3 thousand employees in 3 factories and was at the forefront of the development of many civil engines including famously the RB211 engine and was miles ahead of anyone in the world with some of the engineering technology.

More and more work was shifted to the parent site at Derby and I was always expecting the site to become less viable as the workforce reduced, which is one of the reasons I left. A lot of the technical stuff is actually now done in Germany.

In fairness it has managed to keep going, mainly due to the wide chord fan blade technology and compressor blades manufacture on the site. But this news is devastating and I believe is blatantly using the pandemic as an excuse to shift the work to exploit cheaper labour in abroad. I fear now for this historic factory and the workers who have kept it going.

Singapore isn't renowned for cheap labour is it? I would be genuinely surprised if that was the main reason behind this move.

[cricketfieldclarets]

Sorry about that. I wrongly presumed that you were inferring they had tanked.

I should have added some comments to be fair

[clarethomer]

Singapore isn't renowned for cheap labour is it? I would be genuinely surprised if that was the main reason behind this move.

17% Corporation tax and 0% in first 3 years.

No capital gains tax

Low tax rates for individuals too - especially more favourable to those higher earners.

[Bigvince]

Singapore isn't renowned for cheap labour is it? I would be genuinely surprised if that was the main reason behind this move.

As I understand it the Singapore government paid for the building of the Singapore site (or campus as RR like to call it ). Letting rolls Royce use the site for free for a certain period, after that period they are tied in to paying exorbitant rent thereafter.
This could be one of the deciding factors as to where the jobs were lost! The Singapore facility is state of the art, while the barnoldswick site, especially Ghyll Brow mainly consists of old buildings

[Cirrus_Minor]

It is a long while since I was at Ghyll Brow, some new investment probably needed too update but basically the building and facilities looked fine. The company will have completed risk assessments on political stability, ITAR, training requirements, quality control, etc. and probably decided that they just wanted a change of scenery and some sparkling conversation.

Of course cheaper labour never would come into it.

[dandeclaret]

It is a long while since I was at Ghyll Brow, some new investment probably needed too update but basically the building and facilities looked fine. The company will have completed risk assessments on political stability, ITAR, training requirements, quality control, etc. and probably decided that they just wanted a change of scenery and some sparkling conversation.

Of course cheaper labour never would come into it.

Cheaper labour often comers into business decisions..... business decisions don't usually end up choosing Singapore as a location for cheap labour. For example, the average wage in Singapore (according to overseas relocation reports) is $76,500. The average wage in The Philippines is $7,660 - just about 1/10th of Singapore.

[ŽižkovClaret]

Could any lads ask to be transferred i wonder?

[Bigvince]

Could any lads ask to be transferred i wonder?

Some have been offered positions in Derby

[Lowbankclaret]

Singapore isn't renowned for cheap labour is it? I would be genuinely surprised if that was the main reason behind this move.

It’s a complex state of affairs with Singapore. I kinda understand it but not fully.

So Barnoldswick manufactures blades that are costed in £ (pounds sterling).

Singapore manufactures blades costed in American Dollars.

RR uses hedging when buying dollars, that bit I know nothing about.

Now when comparing costs when I left RR used 1.54 dollars to the pound. I questioned this at the highest level and basically got no answers.

At 1.54 Singapore is slightly cheaper , at 1.3 dollars to the pound Barnoldswick is lots cheaper.

So basically Barlick is suffering due to RR buying dollars years in advance.

[dandeclaret]

It’s a complex state of affairs with Singapore. I kinda understand it but not fully.

So Barnoldswick manufactures blades that are costed in £ (pounds sterling).

Singapore manufactures blades costed in American Dollars.

RR uses hedging when buying dollars, that bit I know nothing about.

Now when comparing costs when I left RR used 1.54 dollars to the pound. I questioned this at the highest level and basically got no answers.

At 1.54 Singapore is slightly cheaper , at 1.3 dollars to the pound Barnoldswick is lots cheaper.

So basically Barlick is suffering due to RR buying dollars years in advance.

Wouldn't it be unusual for a company, of the scale of Rolls Royce, to allow their business be dictated by foreign currency fluctuations, rather than securing sufficient hedging for them to continue to drive their business strategy as desired?