Rohr Plans Joint Venture With 2 Singapore Firms

Chula Vista-based Rohr Inc. said Wednesday that it will form a joint venture with two Singapore companies to operate a relatively small Rohr unit that manufactures engine coverings for business jets.

No jobs in San Diego will be lost if the understanding in principle is completed, said Ron Miller, Rohr Vice President and Treasurer.

However, about 50 manufacturing jobs at Rohr plants in Riverside and Hagarstown, Md., would be eliminated over 18 months, Miller said. The joint venture would transfer manufacturing to plants in Singapore.

Rohr manufactures engine covers and other parts for jet airliners. The business jet segment generates less than 10% of the company’s $1 billion in annual revenue, Miller said.

The proposed joint venture “is one more sign that (aerospace) is a global business,” said John Simon, a Los Angeles-based industry analyst with Seidler Amdec Securities. “Joint ventures and partnerships are occurring around the world. . . . That’s just the way it is these days.”

Miller said Rohr initiated discussions with Singapore Aerospace Ltd. and a second Singapore-based company because Rohr is “focusing on 100-passenger or larger aircraft, and this (business jet segment) just didn’t fit in anymore.” He said the business jet nacelle unit, which is profitable, would become more competitive with the joint venture.

Singapore Aerospace now has no presence in the business jet nacelle segment of the aerospace market, Miller said. The company does do some subcontract work for Rohr, but on commercial airliners.