Aug 20, 2020, 08:10 EST
Bronx, United States, Aug 20, 2020, 08:10 /Comserve / -- Struck hard by the COVID-19 pandemic, Rolls-Royce has decided to close off the company's aircraft component in Prince George County by the mid of 2021.
Virginia, August 18, 2020: Struck hard by the COVID-19 pandemic, Rolls-Royce has decided to close off the company's aircraft component in Prince George County by the mid of 2021. According to the sources, the company wants to shut down the factory in the Crosspointe office park that will put about 280 employees out of work in addition to the 120 layoffs that occurred in June. As per the spokesman of Rolls-Royce North America, Don Campbell, the COVID pandemic has led the company to choose the steep road and make such a decision because it is necessary to protect its future. He further adds that due to the sudden reduction in the workload, the company had to lay off 120 employees.
This closure will slow down the economy in Central Virginia, and all those companies tied up with the factory will lose business. According to the company's financial report for the year ended December 31, 2019, the gross profit has decreased registering EUR 942 million in 2019 to that of EUR 1198 million in 2018, which clearly explains the company's financial status. The underlying profit of the company's core businesses in 2019 has decreased by 7% compared to that of 2018.
Crosspointe was launched in 2011 and delivered elements for the Trent 1000, Pearl 15, and Pearl 700. Alongside this, it also manufactures rotative discs and turbine blades. From the end of 2019, the Civil Aerospace business of the company was already grappling with the tensions surrounding the Trent 1000 engines, which the company was planning to resolve in 2020. However, the arrival of the COVID pandemic has changed the entire scenario for the Prince George County factory.
At the time of its establishment, the company was expected to create a considerable amount of jobs. As per the Rolls-Royce Crosspointe Fact Sheet, the company estimated that the investments would reach up to USD 500 million and create a sum of 500 posts. By the mid of 2020, it ended up shutting down and laying off about 300 employees.
About Rolls-Royce Crosspointe
Situated in Virginia, Crosspointe manufactures top-notch engine components and turbine blade for the advanced aircraft in the world. It is the first Rolls-Royce manufacturing site built from the ground up in the U.S.
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