Rolls-Royce Spreads Its Bets: Saudi Engine Licence, A350F Debut and a £300 Million Home-Market Push

Rolls-Royce licensed MAKEEN to build mtu 2000 series marine engines and is investing £300 million across its UK manufacturing and engineering sites.

Rolls-Royce is widening its industrial footprint on two fronts at once, pairing a fresh manufacturing licence in the Middle East with a sweeping upgrade of its British plants. The FTSE heavyweight confirmed on Thursday that it has granted Saudi Engines Manufacturing Company — better known as MAKEEN — a licence to build and assemble mtu marine engines from the 2000 series, a move the company says dovetails with Riyadh's Vision 2030 development programme. The agreement, struck between Rolls-Royce Power Systems and MAKEEN, leaves the door open to a later extension covering rail traction motors.

That overseas tie-up sits alongside a domestic spending plan unveiled on 28 September, first reported by Reuters. Rolls-Royce is committing £300 million to its UK manufacturing and engineering sites, with the money aimed squarely at expanding capacity in civil aerospace and defence.

Where the £300 Million Lands

The lion's share — more than £140 million — is earmarked for Derby. Bristol picks up over £90 million, while the Inchinnan plant in Scotland receives £43 million. A further £19 million goes to Rotherham and £5 million to Ansty.

According to trade publication Aviation Week, the emphasis falls on scaling up civil aerospace activity. By modernising and enlarging existing production lines, Rolls-Royce intends to make its supply chain more resilient and keep pace with demand from international customers.

A350F Takes to the Air

The civil side notched a milestone of its own on 29 September, when the new Airbus A350F freighter completed its maiden flight powered by Trent XWB-97 engines. Rolls-Royce noted that the engine family has now logged more than 4.5 million flight hours across eight years of service. The first flight marks the powerplant's entry into the growing large widebody freighter segment, and the company framed the test campaign as proof that the reliability of its existing engine lines can carry over to new airframe variants.

Remote Monitoring Network Expands

Maintenance operations are broadening too. On 23 September Rolls-Royce extended its global remote monitoring service for mtu drive systems, opening a new control centre in Arcola, Italy. The unit says the facility sharpens its operational support for ship fleets and industrial drives in key regions.

Buyback Keeps Trimming the Register

Running in parallel with the industrial programme is a £2.3 billion share repurchase. Rolls-Royce reported buying back 3,489,259 ordinary shares between 22 and 28 September under that scheme, with the acquired stock set to be cancelled.

As of the 30 September record date, the company's issued share capital stood at 8,299,229,607 ordinary shares of 20 pence each — a figure Rolls-Royce said matches total voting rights exactly, since no shares are held in treasury. Separately, non-executive director Beverly Goulet picked up 166 ordinary shares on 28 September through a dividend reinvestment at £15.02 apiece.

Shares Hold Near Their Peak

The equity has been trading close to its yearly high. Rolls-Royce closed Friday at EUR 17.43, roughly 5.6% below its 52-week peak, and the stock has added 32% since the start of the year.