ROLLS-ROYCE TO REVIEW BERGEN DIVISION

Forming part of business unit Rolls-Royce Power Systems, the Bergen offering embraces gas and diesel engines in the 1,400-11,830kW range for power generation and marine applications.

Rolls-Royce Holdings gave notice of certain restructural measures at its February 28 presentation of financial results. “As part of our ongoing portfolio evaluation to create a simpler, more focused group, we are announcing today that we are carrying out a strategic review of our Bergen medium-speed gas and diesel engine business. Bergen will be reported within non-core businesses in 2020 results,” stated the company.

Rolls-Royce Power Systems is the second largest unit in the group by turnover, and achieved a 4% increase in revenue last year, buoyed by performance with MTU-branded products and services. A strong advance was recorded in the power generation business, together with market share gains in Asia and increased after-sales penetration. Low single-digit growth is forecast for Power Systems in 2020, excluding “non-core” businesses such as Bergen.

The multinational engineering organisation, for whom aero engines remains the predominant activity, has already reduced its interests in the marine industry through the sale of its Commercial Marine business to the Kongsberg group of Norway, which took effect on April 1 last year. The disposal had been presaged in January 2018 by references to the implementation of “a strategic review” of its commercial marine operations.

Kongsberg Maritime acts as the exclusive distributor of Rolls-Royce Bergen engines for use in commercial vessels. Although not engaged in engine design and production, Kongsberg has become a prominent player in the propulsion equipment sector, and strengthened its role in ship control technology, through the takeover of the various Rolls-Royce activities in Scandinavia and elsewhere.

In recent years, Rolls-Royce has re-invested substantially in the Hordvikneset works, reconfiguring the layout of the plant and introducing new flow-line processes to boost production capability and cut engine assembly and throughput times. The factory has a long track record in the design, development and manufacture of lean-burn reciprocating gas engines.

The latest major product development was the launch in 2018 of the B36:45 gas engine, derived from the B33:45 medium-speed diesel generation introduced three years earlier. The 600kW per cylinder gas engine was initially brought to market as an in-line series, but vee models quickly followed, culminating in the 20-cylinder variant last year. The previously most powerful Bergen gas engine, the B35:40, has an output of 483kW/cyl.

Rolls-Royce has embarked on a programme entitled Power Systems 2030 to transform the business unit from being fundamentally an engine maker to one of being a provider of integrated drive and propulsion systems, using advanced tools for support. The company took a further step along that road in January this year by securing a majority stake in the Berlin-based electricity storage specialist Qinous.