(JW Insights) Sep 4 -- British industrial conglomerate Rolls-Royce broke ground on its Beijing Aero Engine Services Co Ltd (BAESL) in Beijing on August 31 — its 50/50 joint venture maintenance, repair and overhaul (MRO) facility established with Air China — as the company is bullish on the growing demand for after-services of jet engines in China, China Daily reported on September 1.

The facility is expected to be operational in 2026 and reach full capacity in the mid-2030s. By then, it will be able to support up to 250 engine repair services annually. The facility has become Rolls-Royce's largest investment on the Chinese mainland and one of the largest globally in recent years.

When it reaches full capacity, the facility will employ 800 workers, mainly recruited and trained locally, to deliver MRO services on the Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines, which are mainly installed on widebody aircraft such as the Airbus A330 and A350.

Covering an area of more than 80,000 square meters, the facility serves as the first Rolls-Royce MRO joint venture on the Chinese mainland, and the fourth in its global MRO network.

"About 20 percent of our global Trent engines have been delivered to China, and after-service in the country will grow slightly faster than the global average," said Rob Watson, president of civil aerospace at Rolls-Royce.

"When it enters into operation in 2026, BAESL will support the growing MRO capacity requirements of our global customers and, in particular, those in the region. Now our third-largest single-country market, China is an important part of our supply chain," said Watson, who visited China last week, the first major overseas visit in his new role.

Entering the Chinese market in 1963, Rolls-Royce now operates five joint ventures in China including BAESL. Located in Beijing, the new facility supports Rolls-Royce's sustainability goals by reducing the overseas transportation of engines for MRO services.

In the first six months, Rolls-Royce saw booming business performance in terms of profits. The company is eyeing exciting opportunities to grow in the next five years, especially in China, said the China Daily report.

(Yuan XY/Gao J)