UK tie-up for Rolls-Royce and Goodrich

Rolls-Royce has sealed a British-based joint venture with US giant Goodrich.

The UK aero-engines maker is pooling its engine-controls business in a 50-50 joint venture with Goodrich's UK operations.

The combined company, to be called Aero Engine Controls, will provide key parts for Rolls engines. It will employ 1330, of which 1100 work for Goodrich in Birmingham and Belfast, with the rest on the Rolls side of the business in Derby.

Rolls is paying up to $120 million (£78 million) to Goodrich, but said that will have no effect in this year's profit figures. Rolls director Colin Smith said: "This is an exciting opportunity to combine the skills, knowledge and expertise of both companies into a single team with common goals."

Rolls today also said it has landed a £258 million, 10-year contract to provide engine-maintenance support to the UK's fleet of Sea King helicopters.