Rolls-Royce (LON:RR) have announced the guarantee of 7,000 jobs in the East Midlands with a £150 million investment in the UK, its largest in over a decade.
The engineering giant announced it would be investing the majority of the £150 million into a new test bed located in Derby.
In a boost for post-Brexit Britain, the planned investment will constitute its largest single investment into the U.K economy in over ten years.
The facility would test large civil aero-engines and in turn is set to create up to 200 additional jobs in the region.
In addition, there will be no compulsory redundancies in Derby, or Hucknall and Annesley in Nottinghamshire, which will safeguard 7,000 jobs during the next five years.
This marks a reversal of the company’s initial plans to close its precision machining facility in Derby, which would have jeopardised around 150 employees.
Eric Schulz, president of civil aerospace at Rolls-Royce, commented: “This investment comes at a time of unprecedented growth in Rolls-Royce.
“We are doubling the production of new engines at the same time as introducing three new engines to the market.”
Business Secretary Greg Clark MP welcomed the news, stating:
“The UK and Rolls-Royce are known throughout the world as pioneers of advanced engineering technology.
“I welcome the confidence the company is showing in the UK.”
The company currently employs roughly 12,000 staff across the East Midlands region, with around 7,000 covered by a Unite Union agreement.
In response to the decision, Simon Hemmings from Unite, praised the deal as “a once in a generation type of investment and a big commitment to the UK”.
“It’s about keeping jobs in Derby for 25 years plus and we are hoping it will bring hundreds of millions of pounds to the city,” he continued.
Despite the added investment, Rolls-Royce remains under pressure following a series of profit warnings in recent years, as a result of extensive company restructuring measures.
Earlier this year, the company reported a record pre-tax loss of £4.64 billion for 2016, which is one of the largest in UK corporate history.
The loss was attributed to a £4.4 billion writedown as a result of the devaluation of the pound currency following the June Brexit vote, alongside a £671 million penalty to settle bribery allegations.
Shares in the group are currently down 1.10 percent as of 11.0AM (GMT).