Rolls-Royce considers sale of marine division

BRITISH engineering firm Rolls-Royce is considering the sale of its marine division as part of its ongoing business review. The UK-listed business made the announcement as part of a larger statement about further simplification of its business. The firm hit the headlines recently with a series of poor financial results that led it to shed a significant percentage of its workforce.

The statement referred to integration and review of other non-marine divisions of the business. But in the announcement said that over the coming year it will review its marine business which in itself has whittled its offices and sites down from 27 to 15 and cut its work force by 30%, to 4,200 staff, the majority of which is based in the Nordic region.

In the press statement Rolls-Royce said the the business has been investing in new facilities and new technologies and become an industry leader in the fields of ship intelligence and autonomous vessels,  “Given the progress the business has already made, it is now an appropriate time to conduct a strategic review of Commercial Marine. This review will be undertaken during 2018 and we will update the market of the outcome at the appropriate time.”

Group chief executive Warren East said:

“This is the right time to be evaluating the strategic options for our Commercial Marine operation. The team there has responded admirably to a significant downturn in the offshore oil and gas market to reduce its cost base. At the same time, we have carved out an industry-leading position in ship intelligence and autonomous shipping and it is only right that we consider whether its future may be better served under new ownership.”

 

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