Home Business NewsBusinessAutomotive NewsRolls-Royce commits £300m to UK factories as Healey hails ‘new age of industrialisation’

Rolls-Royce commits £300m to UK factories as Healey hails ‘new age of industrialisation’

by Amy Johnson LLB Finance Reporter
28th Sep 26 1:56 pm

Rolls-Royce is investing £300mn across its UK manufacturing network, strengthening production and engineering capacity at five sites as Chancellor John Healey seeks to position industrial investment at the centre of the government’s economic strategy.

The investment, spanning Derby, Bristol, Glasgow, Rotherham and Warwickshire, will support manufacturing infrastructure and the development of future aerospace and defence programmes.

Announcing the investment at Labour’s annual conference, Healey presented the commitment as evidence that Britain could reverse decades of industrial decline through closer collaboration between government and business.

“Conference, this is the new age of industrialisation. This is the new confidence in Britain,” Healey said.

“Lit by this Government, driven forward by business. So, don’t tell me it’s not possible to create a new age of British industry.

“Don’t tell me it’s not possible to have good growth in every postcode. And don’t tell me that people can’t hope again.”

The announcement comes as Labour attempts to attract private investment into manufacturing while maintaining its commitment to fiscal discipline ahead of next month’s Budget.

Rolls-Royce said the latest funding would ensure its UK infrastructure could meet manufacturing demand and support future aerospace programmes. The company has invested more than £3bn in Britain since 2023 through research and development, engineering programmes and upgrades to its facilities.

The largest allocation will go to Derby, the home of Rolls-Royce’s Civil Aerospace operations. The site will receive £140mn for new engineering and manufacturing services designed to support future growth, with completion expected in 2028.

Bristol will receive £90mn to upgrade its UK military power and propulsion operation, supporting more than 3,500 employees. The work is expected to be completed by 2031.

At Inchinnan in Glasgow, £43mn will fund new machinery for manufacturing engine components.

A further £19mn will be invested in the Advanced Blade Casting Facility in Rotherham, supported by £2mn from the South Yorkshire Mayoral Combined Authority. Rolls-Royce expects the investment to help double production of advanced turbine blades for jet engines by 2030.

The company will also spend £5mn upgrading machinery and improving manufacturing efficiency at Ansty in Warwickshire.

Tufan Erginbilgic, Rolls-Royce chief executive, said the UK remained central to the company’s global operations.

“Our manufacturing facilities in the UK are home to the very best of British engineering talent. This £300million investment is a clear statement of our intent,” he said.

“Rolls-Royce is committed to growing the UK’s advanced manufacturing sector and we are proud to be building infrastructure needed to power Britain’s future.”

Erginbilgic said the investment would help Rolls-Royce remain a global leader in commercial aviation and sovereign defence while supporting thousands of highly skilled jobs directly and through its supply chain.

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