Industrial conglomerate Rolls-Royce is considering selling the bulk of its struggling marine business as the company embarks on another restructuring which aims to further slash costs.
"We are embarking on a further simplification of the business, including the evaluation of strategic options for our Commercial Marine operation and a reduction from five operating businesses to three core units based around Civil Aerospace, Defence and Power Systems," said a press release from the company.
As part of this exercise, the British maker of engines plasn to consolidate our Naval Marine and Nuclear Submarines operations within its existing Defence business, and Civil Nuclear operations within its Power Systems business
. This will facilitate a more fundamental restructuring of support and management functions in particular.
These actions are designed to align its business more closely with our strategic vision to pioneer cutting-edge technologies that deliver vital power. "We are in the process of defining this restructuring and further details will be given at the time of our 2017 financial results on 7 March 2018 and a fuller discussion at a Capital Markets event later this year," the statement said.
Chief Executive Warren East said
: “Building on our actions over the past two years, this further simplification of our business means Rolls-Royce will
be tightly focused into three operating businesses, enabling us to act with much greater pace in meeting the vital power needs of our customers. It will create a Defence operation with greater scale in the market, enabling us to offer our customers a more integrated range of products and services. It will also strengthen our ability to innovate in core technologies and enable us to take advantage of future opportunities in areas such as electrification and digitalisation.”