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BAE, Rolls look to navigate way through Brexit fallout

Mon, 11th Jul 2016 09:05

LONDON, July 11 (Reuters) - BAE Systems and RollsRoyce will navigate their way through the uncertaintycreated by Britain's vote to leave the European Union, thecountry's two biggest aerospace firms said on Monday.

Britain hosts the biennial Farnborough Airshow this weekwhich draws BAE and Rolls clients from around the world,relationships which the two firms said they expect to maintaindespite the country's decision to leave the world's largesttrading bloc.

"We don't trade with the EU as a defence entity, it's withindividual nations and I do not believe the UK government isgoing to take its foot off the pedal in terms of defence andsecurity," BAE's Ian King told BBC radio.

"I think those relationships will endure and it will endurebecause of the quality of the armed forces that we have and thequality of technology and capability that we have in thatindustry."

On Monday, Rolls-Royce said it would take 100 percentcontrol of Spain-based aircraft engine and components firmIndustria de Turbo Propulsores (ITP) by buying a 53.1 percentstake owned by SENER Grupo de Ingeniería for 720 million euros($795 million).

Rolls-Royce boss Warren East said the maker of engines foraircraft and ships would also look to its global connections asit seeks to adapt to its new environment.

"We just have to get on with it," East told the BBC. "If youlook at our future business over the next 10 years or so thenprobably three quarters of that is coming from outside of the EUand we have to take that global view."

East said the main questions raised by the outcome ofBritain's June 23 EU referendum included whether Rolls-Roycestaff could continue to move around Europe with ease and whatchanges the company would face from new trade laws.

"We need to work within those limits and find creative waysof getting around whatever problems come our way," he said. (Reporting by Kate Holton; editing by Jason Neely)

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