Rolls-Royce has reported that it has completed the sale of its Naval Propulsors business to Fairbanks Morse Defence, including the specialty and stainless steel foundry in Pascagoula, Mississippi (MS), USA that casts large-scale propulsion components for the US Navy, including controllable pitch propeller blades, hub body castings, large fixed-pitch propellers and waterjets.
The terms of the sale were not announced. Fairbanks Morse Defence, headquartered in Beloit, Wisconsin (WI), USA builds, maintains, and services naval power and propulsion systems for the US Navy, US Coast Guard, Military Sealift Command and the Canadian Coast Guard.
“This acquisition represents a strategic investment in sustaining the United States’ defence manufacturing capabilities and ensuring we remain prepared to meet mission-critical demands,” stated Steve Pykett, CEO of Fairbanks Morse Defence. “The Pascagoula foundry, in particular, plays a vital role in supporting the Navy’s maritime dominance, and its continued operation expands our capacity to serve as a trusted partner to the US military.”
The buyer is also taking over a naval propulsor manufacturing, repair, and testing operation in Walpole, MA.
Rolls-Royce had announced its plan to sell its naval propulsors business in September 2024. It is a critical part of the defence supply chain, and the only privately owned foundry in the US capable of casting large, “Navy standard” propulsor systems. Rolls carried out upgrades of the casting and machining operations in 2020 and 2022.
A separate sale of Rolls’ Naval Handling business in Peterborough, Ontario, also to Fairbanks Morse Defence, is still pending.
Rolls-Royce retains the Naval Gas Turbines and Generator Sets operations, which provide power technologies for naval propulsion and onboard power needs.
The sale of the Naval Propulsors and Handling businesses are part of the transformation of Rolls-Royce, which started in 2023. That transformation is based on a clear and granular strategy, focusing defence on strategic growth in the areas of combat, transport and submarines.
The company has also been investing in its core markets in the United States. Earlier this year, Rolls-Royce announced an expansion of its power systems operations in Mankato, Minnesota to support data centre growth. Over the past decade, Rolls-Royce has invested more than $1.5 billion in the United States, including $1 billion in its defence operations in Indianapolis, Indiana to support new programmes like the US Air Force B-52 Commercial Engine Replacement Programme and the US Army MV-75 FLRAA programme.
Fairbanks Morse Defence has built a diverse portfolio that now includes engines, electrical hardware, motors, valves, cranes, davit systems, fans, fittings, and water treatment solutions. The company has also advanced its technology offerings with AI, digital defence, tele-robotics, additive manufacturing, smart engineering, uncrewed mission management, extended reality, and remote collaboration tools.
