Rolls-Royce Sees 2026 Supply Chain Challenges, China Procurement Up Double Digits

Liu Xiaowei, senior vice president of Rolls-Royce civil aviation, said supply chain challenges in civil aviation will persist in 2026, and the company plans to achieve its zero grounded aircraft target in the second half of the year. Current overhaul capacity is sufficient and expanding, but insufficient production capacity for key components has lengthened overhaul turnaround times and forced some aircraft to remain grounded.

Rolls-Royce has taken measures to address supply chain issues. In 2025, procurement in China grew by more than double digits, and the resilience and industrial base of China's manufacturing sector are significant to Rolls-Royce's global supply chain. The company has also stationed engineers and dedicated teams at key suppliers to help improve management and production capabilities.

Sun Mingze, marketing director for Rolls-Royce civil aviation in Greater China, added that Rolls-Royce has not experienced aircraft delivery delays due to engine delivery issues, and its performance in Airbus and Boeing deliveries has been good. Despite supply chain pressures, the turnaround time for Rolls-Royce widebody engine maintenance has performed well, with the MRO network reducing turnaround time by about 10% in 2025, and further reductions are being achieved through digital tools.

In terms of the MRO network, Rolls-Royce plans to invest a total of GBP 750 million to expand capacity or establish new maintenance capabilities at 12 overhaul facilities.

Greater China is a key investment area in Rolls-Royce's global aftermarket network. In civil aviation, more than 600 aircraft in service or on order in Greater China are powered by Rolls-Royce engines, of which over 500 are in service, with more than 150 on order. In business aviation, nearly half of the business jets in Greater China are powered by Rolls-Royce engines, and the business aviation segment accounts for about 20% of Rolls-Royce's global civil aviation revenue.

Rolls-Royce holds more than 50% fleet share in the Greater China widebody market. Globally, Trent series engine deliveries to Greater China account for about 20% of total global deliveries, meaning one in every five Trent series engines produced serves a Greater China customer.

Regarding joint ventures, Rolls-Royce has four engine overhaul joint venture factories worldwide in which it holds a 50% stake, with two located in Greater China. Beijing Aero Engine Services Company Limited (BAESL), established in 2022 as a joint venture with Air China, officially began operations at the end of 2025. It is the first maintenance facility in mainland China with full widebody engine overhaul capabilities. The first engine delivery from the Beijing plant is expected this year, with full production scheduled for 2034, when it will service 250 engines annually.