Rolls-Royce has unveiled plans to sell its commercial marine business as part of an initiative to further simplify and restructure the company’s core business.
The consideration is a result of the weak demand for Rolls-Royce’s Marine division’s products and services experienced by the company since 2015.
Rolls-Royce previously sold various non-core businesses and cut down its number of sites from 27 to 15, reducing its overall presence by roughly 40% worldwide.
The company has further reduced its workforce by 30% to 4,200, while its marine business has been investing in new facilities and technologies such as ship intelligence and autonomous vessels.
Rolls-Royce chief executive Warren East said: “This is the right time to be evaluating the strategic options for our Commercial Marine operation.
“The team there has responded admirably to a significant downturn in the offshore oil and gas market to reduce its cost base.
“At the same time, we have carved out an industry-leading position in ship intelligence and autonomous shipping and it is only right that we consider whether its future may be better served under new ownership.”
Rolls-Royce intends to review its latest consideration throughout the rest of 2018.
The company also plans to reduce its existing operations from five businesses to three core units based around Civil Aerospace, Defence and Power Systems as part of its restructuring process.
Rolls-Royce’s Naval Marine and Nuclear Submarines operations are also expected to be consolidated within the company’s existing Defence business, with its Civil Nuclear operations currently functioning within its Power Systems business.