Mr Lim Hng Kiang at the Groundbreaking Ceremony of Rolls-Royce’s Aero-Engine Assembly and Test Facility

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE GROUNDBREAKING CEREMONY OF ROLLS ROYCE AERO-ENGINE ASSEMBLYAND TEST FACILITY ON TUESDAY 19 FEBRUARY 2008, AT 3.15 PM AT SELETAR AEROSPACE PARK

British Under Secretary of State for Transport, Jim Fitzpatrick

His Excellency Mr Paul Madden, British High Commissioner to Singapore

Sir John Rose, CEO of Rolls Royce

Distinguished Guests

Ladies and Gentlemen

A Landmark Project for the aerospace industry

It gives me great pleasure to be here for the groundbreaking ceremony of Rolls-Royce’s Aero-Engine Assembly and Test Facility. I am delighted that Rolls-Royce has selected Singapore for this significant project, which is not only a first for Singapore but also a first for Asia. This is the first time ever that large civil aero-engines will be manufactured in Asia. This is therefore a landmark project for Singapore and marks a major breakthrough for our aerospace industry.

Since the 1950s when it first set up its representative office in Singapore, Rolls-Royce has been our partner in progress, growing in tandem with our economy through the decades.Starting with only a handful of employees, Rolls-Royce today employs more than a 1000 people in Singapore and has activities ranging from aerospace maintenance, repair and overhaul (MRO), marine systems, power generation and fuel cells.

When Rolls-Royce first arrived in Singapore, the aerospace industry was only in its infancy.In recent years, however, the industry has been one of the fastest growing with an average annual growth rate of 13% since 1990 and today, Singapore has the highest concentration of aerospace OEMs in the Asia-Pacific. In 2007, the aerospace industry achieved a record output of S$6.9b, and the Singapore government is clearly committed to its continued growth.

Through its investments in state-of-the-art aerospace operations, Rolls-Royce has contributed significantly to raising Singapore’s aerospace capabilities and enhancing Singapore’s status as a global aerospace hub. Rolls-Royce’s Aero-Engine Assembly and Test Facility is thus a major step forward in taking our aerospace industry to a new level.

In coming to its decision to locate its aero-engine assembly plant in Singapore, Rolls-Royce undertook a rigorous investigation. Several locations were considered; understandably competition was keen and the decision was arrived at after a careful evaluation process.I am told that several factors worked in favour of Singapore. These include the quality and strong work ethic of our people; our strong technology orientation coupled with a deep understanding and practice of lean manufacturing processes; our excellent logistics infrastructure and connectivity and, finally, our total cost competitiveness.

These are critical factors for what Rolls-Royce envisages to be their “Facility of the Future” – which will set new benchmarks for productivity and quality in aircraft engine manufacturing.

An impressive start to Seletar Aerospace Park

We see strong growth potential for the aerospace industry and are taking the necessary steps to develop our infrastructure, manpower and technology capabilities in this sector. For example, in 2007, we announced our decision to develop the 300 hectare SeletarAerospacePark. While land is always a valuable resource in Singapore, we wanted to ensure that we have sufficient land for the aerospace industry to grow here. Today, I am delighted that we are present here at the SeletarAerospacePark for the groundbreaking of a facility that marks a new chapter for our Aerospace industry.

Rolls-Royce’s plant here is a strong boost and testament to the attractiveness of SeletarAerospacePark. It will undoubtedly serve as a ‘Queen Bee’, attracting more companies to come here. We expect significant spinoffs for Singapore from Rolls-Royce’s plant as we work jointly to develop a strong supply chain to support it. We expect aerospace suppliers to locate in Singapore and the precision engineering industry will benefit significantly with the opportunities created.Logistics companies will also be key beneficiaries, managing the movement of parts and engines to and from destinations across the globe.

Conclusion

I want to thank Rolls-Royce for their trust and confidence in Singapore. It is a confidence that stems from a partnership that spans many decades. In fact, in 2006, Rolls-Royce received EDB's Distinguished Partner in Progress award for its contributions to Singapore's economic development. This project marks another milestone in the close partnership between Rolls Royce and Singapore. 

We will work together with you to make this plant in Singapore a roaring success and look forward to the day when ‘Made-in-Singapore’ engines will span the sky.