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Lufthansa Technik and MTU Aero Engines launch MRO joint venture EME

PW1000G in service / Photo: Lufthansa Technik

05.12.2017Companies and Organisations

Lufthansa Technik and MTU Aero Engines have set up a joint venture for the maintenance, repair and overhaul (MRO) of geared turbofan engines, with each of the partners holding a stake of 50 percent in the new company.

The name of the new JV is Engine Maintenance Europe, or EME Aero for short. The contract, which followed up on an agreement on the general principles of the cooperation signed in February 2017, was finalized by the two companies on December 4.

EME Aero sp. z o.o. will be based in Poland and will have a workforce of 800 em-ployees in the future. The two parties to the joint venture will invest a total amount of around 150 million euros by 2020. The company will be headed up by project man-ager Derrick Siebert (CEO) from Lufthansa Technik and by Dr. Uwe Zachau (COO), his counterpart at MTU Aero Engines. The facility is slated to be up and running in 2020. The planned annual capacity is over 400 shop visits of PW1000G-series geared turbofans, which power the Airbus A320neo family of aircraft and other airliners. The two joint venture partners MTU and Lufthansa Technik have raised their forecast for the number of employees and the annual shop visits over the past few months.

MTU Aero Engines has already gained very positive experience with setting up a company in Poland. MTU Aero Engines Polska, a subsidiary of MTU Aero Engines, opened shop in 2009. In 2013, work on an expansion of the facility commenced. MTU's Polish facility, based in Rzeszów, carries out development and production activities and is responsible for the assembly of the low-pressure turbine for PW1000G-series engines, a capability it added to its portfolio in early 2015.

For Lufthansa Technik, the new JV is the second big move in stepping up its activi-ties in Poland: In September 2017, the foundation stone was laid in Sroda Slaska for its joint venture company with engine manufacturer GE Aviation that will overhaul GEnx-2B engines and, later on, GE9X engines. Lufthansa Technik has many years of experience maintaining Pratt & Whitney engines. In July 2016, Lufthansa Technik became a member of the MRO network for the U.S. engine maker's geared turbofan (GTF). The network offers the full range of MRO services for PW1000G engines. This additional business has no impact on the workload at Lufthansa Technik's existing facilities.

Lufthansa Technik and MTU have been partnering in a 50-50 joint venture in Malay-sia since 2003. Airfoil Services Sdn. Bhd. (ASSB) near Kuala Lumpur specializes in the repair of low-pressure turbine and high-pressure compressor airfoils.

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