Photo: Courtesy of Air China

UK-based Rolls-Royce on Thursday announced that it has broken ground on Beijing Aero Engine Services Co Ltd (BAESL), its 50/50 joint venture maintenance, repair and overhaul (MRO) facility established with Air China in Beijing, a latest example of strong business cooperation between the two countries.

The ceremony came amid a visit by Britain's top diplomat James Cleverly to China - the first visit by a UK foreign secretary to China in more than five years.

Chinese experts said that the ceremony is a representation of bilateral cooperation potential in the manufacturing sector, with more cooperation potential to be tackled following Cleverly's ongoing visit.

The ceremony is a significant milestone for the MRO facility, which is expected to enter into operation in 2026.

The facility is being built on a greenfield site in the Beijing Capital International Airport Economic Zone, adjacent to the Beijing Capital International Airport.

Covering an area of more than 80,000 square meters, BAESL will be able to support up to 250 shop visits per year at full capacity, which it is expected to reach in the mid-2030s. This activity will be supported by up to 800 employees who will deliver world-class MRO services on Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines.

BAESL is the first Rolls-Royce MRO joint venture on the Chinese mainland, and the fourth in its global MRO network, which includes HAESL, SASEL and N3. 

"When it enters operation in 2026, BAESL will support the growing MRO capacity requirements of our global customers, and in particular those in the region, where we have had a presence since the first Dart Engine powered Vickers Viscount was delivered to China in 1963. Now our third-largest single-country market, China is also an important part of our supply chain," said Rob Watson, president of civil aerospace at Rolls-Royce.

Once operational, it will effectively improve Air China's high-thrust engine operation and further ensure the flight safety of our fleet, said Ni Jiliang, senior vice president of Air China Ltd and chairman of BAESL.

The UK government claims China as a challenge in some sectors like politics and security, but it has also been promoting pragmatic cooperation at the same time, Cui Hongjian, director of the Department of European Studies at the China Institute of International Studies, told the Global Times on Thursday.

Cleverly's visit to China aims to help the UK get out of its economic problems while playing a part of UK's engagement strategy with China, said Cui. 

Wang Yi, a member of the Political Bureau of the Communist Party of China Central Committee and Minister of Foreign Affairs, met Cleverly on Wednesday.

Wang reaffirmed China's commitment to a stable and mutually beneficial relationship with the UK and urged dialogue and cooperation in multiple aspects for stronger trust and more understanding between the two countries.

The annual China International Fair for Trade in Services will run from September 2 to 6 in Beijing, where about 60 companies and organizations will show their latest technological achievements, and more than 2,200 enterprises have confirmed their attendance, activating the global trade of services.

The UK is planning to send its largest business group in four years to attend the event as the Guest Country of Honor, the UK Embassy in China told the Global Times.

The UK is China's third-largest trading partner, second-largest investment destination and third-largest source of foreign investment in Europe, and China is the UK's largest trading partner in Asia. In 2022, bilateral trade reached $103.3 billion.

By the end of 2022, two-way investment stood at $51.02 billion, of which $29.17 billion was from the UK.