Legislation May Disrupt Roll-Royce Production - Report

25th Jun 2010 08:46

LONDON (Dow Jones)--Engine-maker Rolls-Royce Group PLC (RR.LN) has warned of severe disruptions to its manufacturing because of new European Commission rules to regulate industrial chemicals, the Financial Times reports Friday. According to the report, the company last month sent letters to 7,000 suppliers raising awareness of the possibility of a "non-availability" of vital substances that could endanger the production of its aerospace engines. The result could be to hold up shipments of finished engines to big customers while also delaying provision of spare parts to airlines that rely on these components to keep their aircraft flying, it said. The report didn't say how long a delay might be. Strict regulations known as Reach, or Registration, Evaluation, Authorization and Restriction of Chemicals, require about 5,000 chemicals to be registered by the European Chemicals Agency, but only a small fraction of these have passed through the necessary procedures so far, the paper said. Newspaper website: www.ft.com -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320 (END) Dow Jones Newswires June 25, 2010 03:46 ET (07:46 GMT)