Rolls-Royce sells marine division

© Flickr / harry_nlЛоготип Rolls-Royce. Archival photoRolls-Royce sells marine division© Flickr / harry_nl

British manufacturer of jet engines Rolls-Royce announced the possible sale and restructuring of its marine division due to lower demand for oil and gas market and also as part of the restructuring of the holding company, the company said on Wednesday.

It is assumed that after the sale and restructuring of the marine division of the holding company will remain a unit specializing in civil aviation, defense and energy systems. «This will contribute to a more fundamental restructuring, in particular, support functions and management», — stated in the message of the company.

Marine division, which will be launched in the near future, produces marine equipment for oil and gas industry. This business employs about 4.2 thousand people in 34 countries. The largest number of employees based in Norway.

Rolls-Royce expects the restructuring «will lead to additional cost savings and will help to improve the efficiency of the main divisions of the whole group.» «We are in the process of determining this restructuring, and further details will be published simultaneously with the financial statements for the 2017 March 7, 2018,» said the company.

Holding in 2016, has announced that it plans to cut 800 jobs worldwide in the marine division due to the decline in demand for holding’s products from the oil and gas companies. By the end of 2016, the company incurred a loss before tax in the amount of 4.3 billion pounds for the payment of fines in the case of bribery, but also because of the depreciating pound.

Shares of Rolls-Royce on Wednesday jumped 5.4% to 9 GBP per share on the message about the planned restructuring, according to the auction on the London stock exchange.