LONDON — The boss of Rolls-Royce’s Power Systems said the unit making engines for ships and trains was helping to drive innovation across the group, including in its push to hit emission targets, after the UK firm’s top shareholder said it could be sold.
Causeway Capital Management, Rolls-Royce’s biggest shareholder, last month told the Financial Times that the company needed new board expertise and should also consider selling Power Systems in the next three years to reduce debt.
But the division’s chief executive, Andreas Schell, said it made sense for his unit to stay part of the group.
While in civil aerospace, new engines take eight to ten years to come to market, in Power Systems, new platforms are launched more frequently, sometimes every two years, giving the group exposure to new technologies which can be shared between the units.
“We work together quite a bit more than people on the outside often think,” he told Reuters in an interview on Wednesday.
“Power Systems, due to the shorter cycle of its business, actually, is the fastest way for Rolls-Royce to meet its carbon dioxide reduction emission target by 2050.” (Reporting by Sarah Young; editing by Kate Holton)