Rolls-Royce has completed the divestment of its Naval Propulsors business to Fairbanks Morse Defense (FMD), as part of the company's ongoing strategic reorientation.
In 2023, Rolls-Royce announced its strategy to evolve into a more efficient, robust, and expanding enterprise.
Within the defence sector, the company is concentrating on strategic expansion across combat, transport, and submarine segments.
The sale deal announced on 19 September 2024, includes the transfer of naval propulsors operations in Pascagoula, Mississippi and a production campus in Walpole, Massachusetts.
The Pascagoula facility operates as a comprehensive manufacturing hub, involved in the production of controllable pitch propeller blades, hub body castings, large fixed-pitch propellers, and waterjets for the US Navy.
It stands out as the only privately-owned foundry in the US with qualifications to produce propellers for both surface ships and submarines in the US Navy's fleet.
Meanwhile, the Walpole campus has a track record of supplying essential ship propulsor systems and post-sale services to the US Navy, Coast Guard, and various international naval forces.
Its product offerings include controllable pitch propellers, fixed propellers, and waterjets.
Fairbanks Morse Defence CEO Steve Pykett said: “This acquisition represents a strategic investment in sustaining the United States’ defence manufacturing capabilities and ensuring we remain prepared to meet mission-critical demands.
“The Pascagoula foundry, in particular, plays a vital role in supporting the Navy’s maritime dominance, and its continued operation expands our capacity to serve as a trusted partner to the US military. Integrating these highly skilled workforces into Fairbanks Morse Defense strengthens our ability to deliver on our mission of supporting warfighter readiness at home and abroad.”
In addition to this acquisition, Fairbanks Morse Defense is in the midst of purchasing Rolls-Royce's Naval Handling business located in Peterborough, Ontario.
This facility is anticipated to bolster handling systems and undersea technology capabilities, including those used in the Global Combat Ship programmes by the UK, Canada, and Australia.
The completion of this transaction is scheduled for a future date.
Rolls-Royce said it will continue to operate its Naval Gas Turbines and Generator Sets divisions.
In the last ten years, Rolls-Royce has invested more than $1.5bn (£1.1bn) into its US operations, with $1bn of that investment directed towards its defence division in Indianapolis, Indiana.
