The government promised Rolls Royce £250m today, helping to sustain over 7,000 jobs.
Rolls-Royce said today that it had secured orders worth more than £12bn for its Trent are engines, which will be designed and produced at the Rolls-Royce factory in Derby.
Ministers and union leaders welcomed the announcement because it safeguards more than 7,000 jobs at Derby and at suppliers across the UK.
Trade and industry secretary Stephen Byers said: "The government's backing for this project is a practical demonstration of our commitment to helping high-tech, high-skilled companies in the UK to compete on a global stage.
"Today's announcement confirms Rolls-Royce's position as a world leader in cutting edge high-tech design and manufacturing.
"The Trent range has already secured orders worth more than £12bn from 30 customers."
Mr Byers said that the government's investment followed "rigorous scrutiny", although it may be subject to approval from the European Commission.
"The investment will provide a substantial boost to manufacturing, not just in the East Midlands but throughout the country, with over 7,000 well paid, highly skilled jobs being safeguarded, as well as a direct return for taxpayers from the sale of the engines.
"This project will ensure that the Rolls-Royce Derby plant remains a centre of excellence for aero engine design, development and production for years to come."
Mr Byers, who has notified the EC of the government's investment plans, was visiting the Derby factory today.
Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union said: "This is a massive boost for the aerospace industry and shows government support for high-tech manufacturing. It is wonderful news."
John Rose, chief executive of Rolls-Royce, said: "The new Trent programme will reinforce the position of Rolls-Royce as a leader in the world civil aviation market, as well as strengthening the company's links with the world's two major airframe manufacturers.
"The programme will provide a further stimulus to technology acquisition and high-technology manufacturing in the UK. It will also sustain over 7,000 jobs within Rolls-Royce and its UK supply chain."
"That has got to be good news for manufacturing," said Mr Byers.
He was confident the deal would not infringe international rules on state aid for commercial enterprises.
"There are provisions under the World Trade Organisation and there was an agreement arrived at in 1992. And we have a power under the Civil Aviation Act to provide this sort of support.
"If people want to complain, well it's for them to do so."
He was confident that the government had complied with the rules on such investment, he added.
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Rolls-Royce
Department of Trade and Industry
AEEU
