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Lucas wins $3.3B contract
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January 14, 1998: 7:56 a.m. ET
British aerospace firm teams up with Rolls Royce in aircraft engine deal
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NEW YORK (CNNfn) - British engineering firm LucasVarity Plc will provide aerospace systems to Rolls Royce Plc after reaching a contract worth $3.3 billion, the company said Wednesday.
Lucas Aerospace, a division of LucasVarity, will make control systems for Rolls Royce's Trent line of aerospace engines under a risk and revenue sharing agreement.
Those systems will include electronic engine controls, fuel metering units for the Trent 8104 and fuel pumps for the Trent 500 and 600 engines. The Trent engines will be used in the Airbus A340, Boeing 777 and Boeing 747, all of which are used for the long haul market.
Recently, Airbus Industrie, a European aerospace consortium, said that it would order up to 100 Trent 500-powered jets.
Also as part of the agreement, LucasAerospace will invest about about $122 million in Rolls Royce, which is no longer affiliated with the luxury car of the same name.
Ken Maciver, managing director of Lucas Aerospace, said more such partnerships with Rolls Royce are possible, "bringing us even closer together as long-term partners."
"With this new agreement on the Trent program, Lucas Aerospace anticipates its share of engine controls business in the large civil engine market will increase to at least 35 percent over the next 10 years."
Lucas expects to begin delivery of the products by the year 2000 and said it will make a large part of the revenues off of providing spare parts, repair services and overhaul services after the aircraft are built.
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LucasVarity
Rolls Royce
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