As China's civil aviation sector continues its rapid expansion, Rolls-Royce is committed to strengthening its long-term presence in the country. The company's efforts include expanding maintenance, repair, and overhaul (MRO) capabilities and increasing the localization of its services in China.
According to Liu Xiaowei, Senior Vice President of Civil Customer and Custodian for Rolls-Royce Greater China, China currently has over 500 Rolls-Royce-powered aircraft in operation, with more than 100 additional aircraft on order. These aircraft account for nearly 20% of the company's global widebody engine deliveries, highlighting China's strategic importance in Rolls-Royce’s global supply chain.
Market Growth and Strategic Investments
Looking ahead, the Chinese market is expected to see the number of widebody aircraft increase from over 700 to around 1,100 by 2040, driven by fleet expansion and replacement of aging aircraft. This growth presents long-term opportunities for Rolls-Royce, especially in the context of increasing demand for modern, fuel-efficient engines.
"We see China as one of the most important markets for Rolls-Royce and an important part of our global supply chain," expressed Liu Xiaowei.
Furthermore, Rolls-Royce has taken significant steps to localize its maintenance operations in China. The opening of Beijing Aero Engine Services Ltd (BAESL), a joint venture with Air China, marks a milestone as China's first full-scope overhaul facility for Trent widebody engines. The facility services Trent 700, Trent XWB-84, and Trent 1000 engines, with a planned capacity of 250 engines annually by the mid-2030s.
In addition, Rolls-Royce has been expanding its capabilities at Hong Kong Aero Engine Services Ltd (HAESL), increasing its workforce and adding new functions. The company’s investments demonstrate a commitment to China’s MRO sector and the country's significance as a maintenance hub.
"Even with our existing maintenance capabilities in Hong Kong, we still decided to establish this advanced overhaul facility in Beijing," Liu said. "It demonstrates our long-term investment in China as a vital hub in our global supply chain and MRO network."
China's booming civil aviation industry, driven by rebound in international travel and fleet renewal, offers substantial growth prospects for Rolls-Royce's aircraft engine business. The company's strategic investments aim to capitalize on the expanding market, supporting long-term growth and supply chain resilience in China.
