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Hampson New 40 Million Pounds Sterling Order from Rolls-Royce

17 May 2000

Hampson Industries Plc New 40 Million Pounds Sterling Order from Rolls-Royce

    LONDON, May 17 Hampson Industries plc ("Hampson") is
pleased to announce that its subsidiary, Robson Precision Ltd, has signed a
contract to supply gas turbine engine components to Rolls-Royce plc in a "New
Deal" initiative that could provide a turnover to the Birmingham based
sub-contractor of 40 million pounds sterling ("pounds") over the next
four years.  The contract follows an earlier signing by Mibert Precision Ltd,
another Hampson subsidiary, potentially worth 5 million pounds over
three years.
    The "New Deal" introduced by Britain's premier aircraft engine builder
requires improving quality, costs and deliveries to "world class" levels from
a reduced sub-contractor base.  Robson was chosen because of the company's
evidence of improvements in all areas of production and administration
combined with a policy of continuous investment in modern machine tools.
    Robson has provided Rolls-Royce plc with thousands of components for a
wide range of aircraft engines over many years.  The contract will allow the
company to focus on a core base of fewer product lines with year-on-year cost
reductions, at the right quality and with shorter lead times for delivery.
The company is also aggressively reducing waste in all its forms, accelerating
machine-tool setting times and improving quality yield.
    Robson's components are often manufactured from castings, material and
forgings supplied by third-tier companies with specialised skills.  Achieving
the aims of the contract will require a re-appraisal of sourcing and
purchasing methods to ensure that the entire supplier chain adopts the same
commitments to improvements required of Robson Precision.
    Having moved recently to a prestigious new 60,000 sq.ft. factory north of
the City of Birmingham, the company is already on target to supply "world
class" products.  Special manufacturing cells have been set up for specific
product types to ensure a high level of skills and to provide a focus on
families of components.  Kan-Ban supply systems are being established to
provide customers with continuity of supply and to eliminate manufacturing
lead times.
    In signing the deal, Hampson Industries' Chief Executive Chris Davies
said:
    "Rolls-Royce is leading the quest to become a 'world class' aircraft
engine builder and Robson Precision is privileged to be part of the team that
will make this happen.  We have seen developing countries in the Far East and
Asia competing with the manufacturing base of this country and it is vital
that we take the action required to ensure that we stay in front.  The 'New
Deal' contract will ensure that we do