Rolls Royce Rolls the dice on dodgy Turkish nuclear reactors!

Patrick Regis, Rolls-Royce Regional Director, Turkey and Central Asia said: “We are delighted to enter into this important agreement. Working closely with Istanbul Technical University, Rolls-Royce can support the Ministry for Energy and Natural Resources in its plans for a programme of civil nuclear power.

Image source ; http://www.allvoices.com/cartoons/c/102545558-corruption-in-turkey

By K. Steiner-Dicks on May 8, 2014

http://analysis.nuclearenergyinsider.com/supply-chain/rolls-royce-puts-more-capital-nuclear-activities

Rolls Royce will focus on growing its civil nuclear power activities and dispose of other assets after agreeing to sell the majority of its energy unit to Siemens, it has been reported.

According to a report by the Wall Street Journal, Rolls Royce may also sell residual activities in fuel cells and smaller power stations that Siemens does not want, Rolls-Royce’s Chief Financial Officer Mark Morris said.

The company has signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration.

The business being sold supplies aero-derivative gas turbines, compressor systems and related services to customers in the Oil and Gas and Power Generation sectors.

On completion of the transaction, Rolls-Royce will receive a further £200m for a 25 year licensing agreement, granting Siemens access to relevant Rolls-Royce aero-derivative technology for use in the 4 to 85 megawatt power output gas turbine range.

Siemens’ Energy sector has around 83,500 employees and in 2013 contributed revenue of €26.6bn and underlying profit of €1.9bn.

John Rishton, Rolls-Royce, CEO, said: “This agreement will give the Energy business greater opportunities as part of a much larger energy company and allows Rolls-Royce to concentrate on the areas of business where we can add most value.”

The transaction has been approved by the boards of directors of Rolls-Royce and Siemens, and is expected to complete before the end of December 2014, subject to closing conditions, including regulatory approvals.

In December 2013 Rolls-Royce has announced that it would collaborate with Istanbul Technical University to assess the capability and development needs of the Turkish supply chain to deliver the country’s planned fleet of civil nuclear reactors.

A Memorandum of Understanding (MoU) was signed by Rolls-Royce and Istanbul Technical University witnessed by His Excellency Taner Yildiz, Minister for Energy and Natural Resources. The MoU provides a roadmap for developing a nuclear qualified supply chain capable of delivering equipment and services to the new reactors planned to be built in Turkey. The roadmap will also align R&D strategies with future market requirements to ensure the latest technology is utilised.

Patrick Regis, Rolls-Royce Regional Director, Turkey and Central Asia said: “We are delighted to enter into this important agreement. Working closely with Istanbul Technical University, Rolls-Royce can support the Ministry for Energy and Natural Resources in its plans for a programme of civil nuclear power.