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Wood Group adds Rolls Royce Allison to engine overhaul division

5 Feb 2002 – Rolls Wood Group, part of UK energy services firm Wood Group, has acquired the Rolls-Royce Allison industrial and marine repair and overhaul engine programme from Rolls-Royce Engine Services Oakland of California, USA for approximately à‚£20m ($28.4m).

The deal gives Rolls Wood Group the resources and assets of the Rolls-Royce 501K and 570/571 gas turbine product lines, including people, equipment and capabilities. More than 2000 of these engines are currently operated world-wide by major oil, gas transmission and power generation companies, as well as customers in the marine market.

“Acquiring the 501K and 570/571 programmes is a great enhancement to Rolls Wood Group’s business, and further consolidates Wood Group’s already strong relationship with Rolls-Royce,” said Hugh Gibson, Managing Director of Rolls Wood Group. “It also adds another significant engine type to our already broad range of equipment.”

Rolls Wood Group was established in 1990 as a joint venture between Wood Group and Rolls Royce plc to provide maintenance, repair and overhaul services to operators of industrial aero-derivative gas generators in the global oil & gas, power generation, and marine propulsion industries.

The engine repair business acquired in the deal is based largely in San Leandro, California. Rolls Wood said it plans to establish a branch in Aberdeen, including full engine performance testing in order to provide the overhaul service to the significant population of engines in the Eastern Hemisphere. The initial investment in Aberdeen will be about à‚£1m and it is anticipated that additional jobs will be created.

“It is our intention to develop the acquired business internationally through our key operating centres round the world” said Gibson. “The management team we have inherited are world-class and we will build on their capabilities in providing an improved customer overhaul and repair service round the world.”

501K gas generators have been in service since 1963, and the 570/571K series since 1979. Both have a wide range of applications, from oil and water pumping and gas compression offshore, to marine propulsion and power generation.