Rolls-Royce upbeat on China aviation

A technician checks the nose cone of a Trent XWB aircraft engine on the production line at the Rolls-Royce Holdings Plc factory in Derby, the United Kingdom. CHRIS RATCLIFFE / BLOOMBERG VIA GETTY IMAGES

Rolls-Royce Plc said it is in close and regular talks with Commercial Aircraft Corp of China Ltd, and willing to provide engines for the country's wide-body aircraft that is currently under research.

COMAC said that it is researching and developing a wide-body commercial jet with Russia, and the passenger plane is expected to be delivered within 10 years.

Currently, Rolls-Royce accounts for 45 percent of the power engine market of wide-body aircraft, followed by General Electric Co, United Technologies Corp's Pratt & Whitney Division and CFM International.

In the next two decades, more than 1,300 wide-body aircraft are expected to be delivered to China, accounting for 17 percent of its global deliveries, Rolls-Royce said.

Eric Chen, Airbus China president and CEO, said China's booming growth in international flights, especially long-haul routes, requires wide-body aircraft.

From 2014 to 2033, the global market for aircraft engines and gas turbines will be worth $2.68 trillion, according to a forecast by Rolls-Royce. Of the total, the demand for civil aircraft engines is seen being worth $1.05 trillion, while the related demand for services is reaching $700 billion.

Rolls-Royce said it is bullish on the growth potential of markets that are related to the Belt and Road Initiative, and it aims to expand its services in the regions.

It has received orders to supply 488 engines for trains made by Chinese locomotive manufacturer CRRC Corp Ltd, the world's biggest supplier of rail transit equipment. Those orders come from countries and regions related to the Belt and Road Initiative, including Australia, New Zealand, Sri Lanka, South Africa, Madagascar as well as Argentina.

"There are more than 60 countries and regions that are included in the Belt and Road Initiative and others are invited to be part of it. As the business opportunities expand, we will invest accordingly," said Patrick Horgan, regional director of Rolls-Royce Northeast Asia.

"There is clearly a huge infrastructure requirement and that demand is a significant opportunity for us and others," he said.

By the end of 2016, Rolls-Royce had a net order book worth 79.8 billion pounds ($103 billion). The group reported sales of 13.8 billion pounds last year and profits of 813 million pounds.

The group is researching and developing unmanned ship control systems and intelligent ship technology solutions.

The company said reform of the shipping industry is set to make an impact on the future growth of the 21st Century Maritime Silk Road.