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Rolls Royce reportedly preparing temporary closures

By Alexander Bueso

Date: Tuesday 27 Oct 2020

Rolls Royce reportedly preparing temporary closures

(Sharecast News) - Rolls Royce is reportedly preparing temporary closures and cuts to hours as part of plans purportedly aimed at offsetting the impact on the industry from the second wave of the coronavirus pandemic and Brexit.
Just the day before, workers at two of its UK factories had announced their intention to strike over plans to shift some production to Singapore.

That was followed by a warning out of business lobby group ADS, which according to the BBC said that the UK aerospace sector was "at risk" if ministers did not clinch a deal with Brussels for the mutual recognition of parts.

Without an agreement, customers would "go elsewhere or UK-based businesses" would choose to relocate."

"Even with a deal we are facing significant additional costs," ADS chief executive, Paul Everitt, told the BBC.

"It gets worse if there's no deal."

ADS added that ministers had chosen not to prioritise an agreement on the certification of aerospace components in trade talks with the European Union, with the focus instead being on issues such as fishing rights.

In June, the company had already announced 3,000 job cuts across the UK and later said it would stop manufacturing wide chord fan blades for new jets at its Bankfield factory in Barnoldswick and move the work to Singapore by 2023.

That was followed earlier in October by the over-subscribed sale of approximately £2bn in bonds, as part of a wider £5bn fund raising exercise.

As of 0853 GMT, shares of Rolls Royce were trading 3.14% higher to 233.2p.


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