RR is investing in Asia for a number of reasons, and while it isn’t immeadiate doom and gloom for its Uk manufacturing base, it needs to be mindful.
Some reasons for investment in Asia
– rr must expand to deliver its future growth potential (60bn). Where possible they will always invest where government subsidies will assist. At present that help is minimal from the Uk.
– its where the growth is coming from. The Asian economies aren’t stupid, and sign deals based on a certain % of the deal being sources locally. So a % of the cost of the engine will come from Asia
-the Uk struggles to provide the number of skilled engineers / technicians that the Uk aerospace industry requires. This is the real danger to Uk high value added manufacturing imo.
Having said all that, there will always be a Uk presence for rr. It’s development grants from Uk mod should help maintain some of that. The order book is also so big that the overseas investment is needed in addition to its Uk factories.
It’s also a truely global company now (has been for a while) and has been manufacturing in Germany, norway and the US for a good number of years.