Rolls-Royce To Sell Bristol Aerospace

The disposal will extend the restructuring launched by John Rose, the former head of R-Rs aero-engine business, since he became group chief executive in April. He has already put the groups UK-based Parsons steam turbine business, which employs 2,500, up for sale.

Bristol, based in Winnipeg, Manitoba, has annual sales of 55 million and makes up roughly a third of R-Rs operations in Canada.

The company declined to disclose Bristols earnings, beyond saying that it is profitable. Bristols business includes aircraft maintenance contracts with the Canadian armed forces; production of rockets for the US National Aeronautics and Space Administration (Nasa); and the manufacture of missiles and of military targets, which are exported to various countries.

R-Rs growing focus on the manufacture of gas turbine engines to propel aircraft and ships, and for electricity generation and pipeline pumping has accelerated since Rose took charge.

Stan Todd, president of the Canadian subsidiary, said yesterday the divergence of Bristol from R-Rs core business has reached a point where we now believe it is in the best interests of Bristol for it to be owned by a company more focused on these products.

R-R has invested heavily in its other Canadian operations in recent years, most notably at a plant in Montreal that makes the industrial derivative of the new Trent aero engine.