Beijing, 21 August 2024 (TDI): The chief executive of British power and propulsion solutions provider Rolls-Royce in China stated that the company is still dedicated to invest in China because the nation has a significant aviation industry and is essential to its supply chain.
“There are many suppliers situated throughout China. Our supply network includes China as a key component, and it always will.” Julian MacCormac, regional director of Rolls-Royce Greater China, explained to China Daily in a recent exclusive interview that they supply to the engines that are made for the worldwide market.
Apart from of serving as the chair emeritus of the British Chamber of Commerce in China, MacCormac stated that Rolls-Royce operates many joint ventures and one fully owned manufacturing plant throughout the nation. They are engaged in maintenance, repair, and overhaul in addition to part production and the assembly of diesel engines.
Because some of its top-performing suppliers are based in China and can meet its strict criteria while remaining competitive, MacCormac stated that Rolls-Royce is still evaluating the country’s potential.
According to him, Rolls-Royce believes that China’s aviation industry has a lot of room to grow as it recovers from the COVID-19 pandemic, which previously presented significant difficulties for the industry.
Over 350 million domestic passengers were flown by China in the first half of this year, representing a 23.5 percent annual growth. According to the Chinese Civil Aviation Administration, this was 9% higher than the pre-pandemic level in 2019.
Furthermore, a higher GDP and better living conditions are directly related to aviation. He predicted that China’s aviation market will rise in step with the country’s economic expansion.
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As planned, China’s GDP grew by 5% in the first half of this year compared to its yearly growth objective.
In light of this, Rolls-Royce has implemented further investment plans to ensure that its capacity keeps up with the rapid demand.
“To support the growing installed fleet in China, we need to invest here to be near our clients and be able to provide them with the necessary services and support,” MacCormac stated.
In Beijing, Rolls-Royce and Air China have partnered and invested together. The two businesses collaborated to create a maintenance, repair, and overhaul facility in 2022, and by 2026, it will be operational.
According to MacCormac, the company is making talent and skill investments to make sure it has the necessary personnel and capacity for the project in order to repair and maintain the engines.
He stated, “The plant can maintain 250 engines a year at optimal efficiency, serving operators in China and other countries. For us, that initiative is quite exciting. It is our largest investment in the Chinese mainland to date.”
According to MacCormac, the nation must guarantee greater clarity and openness on expectations and predictability for business if it hopes to draw in more foreign investors and deepen its opening up.
He said, “In actuality, firms are looking for a specific level of continuity. While there are undoubtedly a lot of opportunities as China develops, what matters most is that businesses have faith in their ability to contribute to China’s future success.”
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The 20th Central Committee of the Communist Party of China adopted a resolution in July during its third plenary session that states that China will continue to reform the organizations and procedures that support foreign investment and guarantee national treatment for foreign businesses with regard to licensing, standard-setting, and access to production factors.
