Rolls-Royce Holdings plc is set to pull the plug on its aircraft-components-assembly plant in Prince George County, Virginia, by middle of next year with the loss of 280 jobs, the company said over the weekend.
Staff have been told. The closing could disrupt Virginia's economy as suppliers lose contracts with the company.
Shutting the factory is the result of a decrease in profits thanks to the continuing international virus disaster, Rolls-Royce representative Donald Campbell said. Since June 120 workers had been laid off from the factory. Virginia is the British-based company's headquarters in North America.
The factory, which opened in 2011 and employed around 400 staff in 2019, makes high-performance spare parts like rotary jet engine discs, turbine blades and other hardware. The local government offered a $57-million incentive for the factory that was tied to jobs and investment.
The pandemic has brought an unprecedented drop in the international aviation industry which the company expects will take many years to normalize, Campbell said. The decision was "difficult but necessary" in order to make sure the company remains operational. Rolls-Royce has cut staff elsewhere around the world, too. To avoid more job losses Rolls-Royce has cut other costs.
