Lufthansa Technik and MTU Aero Engines are preparing to set up a joint venture company for the MRO of geared turbofan (GTF) engines, with each of the companies holding a 50-percent stake. A treaty was signed by the two companies in Berlin on February 20, after the feasibility of such a joint venture had been examined over the past few months.
According to the plans, the new facility will be up and running by 2020 and have over 500 employees. By 2020, a full amount of around 150 million euros will be invested into the new location. The facility will be designed to house over 300 shop visits of PW1000G-family GTF engines for the Airbus A320neo family of jetliners and other aircraft. The search for a globally competitive site in or outside Europe will be accomplished within a few months’ time.
Johannes Bussmann, chairman of the Executive Board of Lufthansa Technik AG, remarked, “We are pleased to have found a strong partner in MTU with whom we can steer our joint company to success. For Lufthansa Technik, this move marks another important step in strengthening and expanding its partnerships with reputable engine manufacturers.”
Michael Schreyögg, chief program officer of MTU Aero Engines AG, said, “With the new joint venture, MTU is continuing its successful partnership strategy. Lufthansa Technik is the ideal partner for us in this endeavor. By setting up a joint facility, capital investments can be shared and opportunities for synergy and scale generated for both companies. Our objective is to build the most efficient MRO shop for GTF engines around.”
Lufthansa Technik and MTU have been partnering in a successful, 50-50 joint venture in Malaysia since 2003. Airfoil Services Sdn. Bhd. (ASSB) near Kuala Lumpur specializes in the repair of low-pressure turbine and high-pressure compressor airfoils.
