Rolls chief's jet engine ultimatum: Turbo Tufan tells Labour to support development NOW - or risk 40,000 jobs going abroad
The boss of Rolls-Royce has warned that Labour must act quickly to support a new jet engines programme – after the Mail revealed they could be built abroad.The FTSE 100 giant is believed to be seeking up to £200million in state backing for its multibillion-pound plan to re-enter the £1.6 trillion short-haul aircraft engine market.Pressed on how soon the Government must act, boss Tufan Erginbilgic told the Mail: ‘The sooner the better because business is a fast-moving thing.’The warning came as Rolls reported a surge in profits and the launch of a share buyback programme worth up to £9billion over three years, sending the stock to a new record high.In December, the Mail revealed it was weighing up whether to develop its narrow-body engine programme in Germany or the US if the UK fails to deliver the subsidies it is asking for.Insiders said there were plenty of options to develop the engines outside the UK, with the Derby company having been courted by Washington and Berlin. Jobs: Rolls-Royce chief exec Tufan Erginbilgic, pictured, is reportedly seeking £200m in state backing to help develop the next generation of jet engines for short haul aircraftWith the project likely to create 40,000 jobs at Rolls and in the supply chain, that would represent a blow to growth hopes.Yesterday, Erginbilgic declined to comment directly when asked if a lack of support would result in an overseas launch. But he told the Mail: ‘What I would say is: governments normally should support what is best for the country and in this case it happens to be that Rolls-Royce’s programme will create the biggest economic growth for the UK.’The chief executive noted that the development of narrow-body engines was at the heart of the Government’s industrial strategy. Going abroad would be a body blow to Britain, echoing other setbacks, such as AstraZeneca scrapping a £450million vaccine plant on Merseyside.Erginbilgic said the support being sought to back the research and development costs was just a fraction of the billions of pounds Rolls will spend.‘It is natural that government will look to support that,’ he added. ‘Not supporting it would be a strange thing to do.’Erginbilgic said rivals were receiving ‘two, three times the support that we actually get’, adding that: ‘We are in a competitive world – you need to think about that.’He said: ‘This is actually very good for the UK in terms of job creation and economic growth – and the country needs it.’Dubbed ‘Turbo’ for his ferocious work ethic, Erginbilgic has led a stunning turnaround at Rolls since he took over three years ago – driving an astronomical 15-fold rise in its shares.Yesterday, the stock rose by 3.2 per cent, or 42.5p, to 1352.5p as it reported a 40 per cent jump in profit to £3.5billion, with more growth to come. Its aeroplane engines business is benefiting from an increase in airline flights, and it is being boosted by higher military spending.Rolls’ power systems operation is boosted by burgeoning demand from data centres powering the growth of artificial intelligence. Erginbilgic said: ‘We believe our growth potential is unmatched as we have more optionality for further growth than many other companies.’SAVE MONEY, MAKE MONEY4.43% cash Isa4.43% cash IsaTrading 212: 0.8% fixed 12-month bonus£100 cashback£100 cashbackTransfer or fund at least £10,000 with Prosper4.61% cash Isa4.61% cash IsaIncludes 12-month boost for new customers£3,000 cashback£3,000 cashback1% cashback up to £3,000 when transferringSipp transfersSipp transfersGet between £100 and £3,000 cashbackAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
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Rolls chief's jet engine ultimatum: Turbo Tufan tells Labour to support development NOW - or risk 40,000 jobs going abroad
