Rolls-Royce plans to focus more on civilian nuclear power following the sale of its gas turbine and compressor business to Siemens.
Rolls-Royce also plans to shed additional assets, potentially including ventures involving fuel cells and smaller power plants. The Wall Street Journal on Wednesday quoted Chief Financial Officer Mark Morris as saying the British company will expand its nuclear power business in their place.
In a release issued the previous day, CEO John Rishton said the sale, "allows Rolls-Royce to concentrate on the areas of business where we can add most value.”
In addition to supplying the British navy's nuclear fleet, the company also provides nuclear steam supply systems, process equipment, instrumentation and control, waste handling systems and services for nuclear power plants. The divisions to be sold to Siemens supply aero-derivative gas turbines and related services targeting oil, gas and non-nuclear power generation customers. Siemens will pay $1.3 billion for them, along with $399 million for a 25-year gas turbine licensing agreement under the proposed deal. If approved by regulators, it will affect divisions employing about 2,400 people at Rolls-Royce.