Rolls-Royce has completed the sale of its Naval Propulsors business to Fairbanks Morse Defense (FMD), continuing a broader transformation strategy that began in 2023, according to a press release issued on 16 July.
The transaction, originally announced on 19 September 2024, includes the transfer of Rolls-Royce’s naval propulsor units located in Pascagoula, Mississippi, and Walpole, Massachusetts. The sale of a related Naval Handling business in Peterborough, Ontario is still pending and expected to close at a later date.
Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which the company describes as providing “power-dense solutions for naval propulsion and onboard power needs.”
The divestment aligns with a corporate transformation strategy focused on strengthening Rolls-Royce Defence’s position in key segments: combat, transport and submarines. According to the company, the sale reflects a shift toward more targeted growth areas, particularly within U.S. defence markets.
The statement also highlighted continued investment in the United States. Earlier this year, Rolls-Royce expanded its power systems operations in Mankato, Minnesota to support data centre growth.
Over the past decade, the company has invested over $1.5 billion in its U.S. footprint, including $1 billion in Defence operations in Indianapolis to support programmes such as the U.S. Air Force’s B-52 Commercial Engine Replacement and the U.S. Army’s MV-75 FLRAA programme.
Thank goodness they kept the gas turbines.
This is a bad move considering who invented them in the first place and ties UK SSN to the US!!!! Another British industry removed!
agree – gone are the days when our UK corporate leaders let national support influence and guide their “strategy” – its only where the money is that matters sadly – BAES’s decision to abandon the civil aircraft market and focus entirely on defence related aviation was appalling and so regretful ever since