(Last Updated On: August 11, 2018)
San Antonio will get a slice out of the $15 Billion Deal between Standard Aero & Rolls Royce
San Antonio will get a slice of a $15 billion maintenance deal between StandardAero and Rolls-Royce. The 20-year deal was brokered between Standard Aero (the maintenance company) and Rolls Royce (the engine maker). The deal involves overhaul of RR AE-2100, AE-1107 and T56 Series IV engines through the year 2038, according to sources in StandardAero. The engines are used primarily in military transport planes such as the Lockheed Martin C-130J Hercules and the Bell Boeing V-22 Osprey tiltrotor transport.
The overall work flow will be spread among the Standard Aero facilities in San Antonio; Maryville, Tennessee; and Winnipeg, Canada, depending upon which facility has expertise over the particular type of engine.
The Mayor of San Antonio Ron Nirenberg stated that the city had invested $1 million into efforts to enhance the (now) Standard Aero’s facility. “The port and the city supported those efforts to modernize a former Air Force workshop into a 21st-century facility—allowing Standard Aero to aggressively pursue expansion opportunities and create new jobs,” Nirenberg said. “That partnership, and those strategic investments, are paying off.”
City money came from bond funds and matched a federal grant, said Bruce Davidson, the mayor’s spokesman. The city’s investment went into the test cell facility that allows Standard Aero to test the performance of engines before they are returned to clients. Port San Antonio says it has spent $9 million over the last decade to fund improvements at Standard Aero’s facilities. Mark Buongiorno, Standard Aero’s San Antonio general manager, said that “the support of our local partners has laid the foundation that is giving us the flexibility to compete globally and deliver the highest quality of service to our clients.”
In 2017, Standard Aero took control of its 700,000-square-foot U-shaped building and the test cell facility, after Lockheed Martin announced it would end its operations in San Antonio.
In December 2017, Standard Aero in San Antonio was also awarded an 8½-year, $600 million contract by the U.S. Air Force to overhaul and upgrade Rolls-Royce’s T56 line of engines used in Lockheed Martin C-130H transport airplanes and other military aircraft. Similar work was already being done at the San Antonio facility.
Standard Aero is owned by Veritas Capital, a New York City-based private equity firm.