Goodrich Corporation and Rolls-Royce Group plc have jointly stated in a communiqué that both firms have completed the formation of a joint venture company, to develop and supply engine controls for Rolls-Royce aero engines.

The joint venture company, christened ‘Rolls-Royce Goodrich Engine Control Systems Limited’ will operate as Aero Engine Controls.

It may be noted that each of the contributing companies owns 50 per cent of Aero Engine Controls. However, Goodrich will retain the aftermarket products and services business associated with the joint venture's products.

Under the arrangement, Goodrich received $100 million in cash, which was used to make a voluntary incremental contribution to its pension plan.

The two companies announced their intention to form the joint venture on August 14, 2008, and the signing of an agreement to form the joint venture on December 22, 2008.

The transaction closed on December 31, 2008.

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets.