Goodrich Corp. [GR] and Rolls-Royce plc Aug. 14 announced they have signed a Letter of Intent proposing the formation of a joint venture company, which would develop and supply engine controls for Rolls-Royce aero engines.

Colin Smith, director–Engineering & Technology, Rolls-Royce plc, said, "This proposed joint venture would allow us to align our activities more closely, and reflects the importance we attach to the engine control system in optimizing engine performance."

Curtis Reusser, segment president, Electronics Systems, Goodrich, said, "This arrangement would bring benefits to both our companies. Goodrich already works closely with Rolls- Royce and we believe closer integration would provide an even more efficient delivery of these important engine control systems."

If the proposed joint venture goes ahead, the aim would be to complete the joint venture as quickly as possible, meaning in several months because of regulatory reviews, consultation and approvals.

The joint venture it would enable the two companies to integrate their engine controls activity more closely. It would combine Goodrich’s existing U.K.-based engine controls design and manufacturing business and Rolls-Royce’s expertise in the integration of controls into the engine. Goodrich would retain the aftermarket products and services business associated with the joint venture’s products.

Under the proposals, each of the contributing companies would own 50 percent of the joint venture company. Both companies will begin discussions with employee representatives on proposed timescales for consultation.

Around 1,100 U.K.-based Goodrich employees and 500 Rolls-Royce employees in Europe and the United States may transfer into the proposed joint venture, the companies said in a statement.

Rolls-Royce has established a strong position in global markets–civil aerospace, defense aerospace, marine and energy. The Group has a broad customer base comprising more than 160 armed forces, 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries.

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets. With a strategically diversified portfolio of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities.