Goodrich Corporation (NYSE: GR) and Rolls-Royce plc announced today that they have signed a Letter of Intent proposing the formation of a joint venture company, which would develop and supply engine controls for Rolls-Royce aero engines.

If the proposed joint venture goes ahead, it would enable the two companies to integrate their engine controls activity more closely. It would combine Goodrich's existing UK-based engine controls design and manufacturing business and Rolls-Royce's expertise in the integration of controls into the engine. Goodrich would retain the aftermarket products and services business associated with the joint venture's products.

Under the proposals, each of the contributing companies would own 50 per cent of the joint venture company. Both companies will begin discussions with employee representatives on proposed timescales for consultation.

Colin Smith, Director -- Engineering & Technology, Rolls-Royce plc said, "This proposed joint venture would allow us to align our activities more closely, and reflects the importance we attach to the engine control system in optimizing engine performance."

Curtis Reusser, Segment President, Electronics Systems, Goodrich said, "This arrangement would bring benefits to both our companies. Goodrich already works closely with Rolls-Royce and we believe closer integration would provide an even more efficient delivery of these important engine control systems."