IR-News details

Zhuhai, November 24, 2020 – MTU Maintenance Zhuhai, a joint venture between MTU Aero Engines and China Southern Airline Company limited, announces plans to establish a second facility in the neighboring Jinwan district. The facility is to be called MTU Maintenance Zhuhai Co., Ltd. Jinwan Branch, will have an initial annual capacity of 250 shop visits and expects to enter operations in 2024. The purchase of a 150,000 square meter plot of land has been agreed with local government and the project will now enter the detailed planning and construction stages.

“We have made the decision to invest in an additional facility as we are confident of continued recovery in the Asian region and increasing growth and demand for narrowbody engine services moving forward,” says Michael Schreyögg, Chief Program Officer at MTU Aero Engines. While MTU Maintenance Zhuhai saw an impact on its figures in the second quarter, the facility is now back operating at nearly 100 percent once more.

MTU Maintenance Zhuhai Co., Ltd. Jinwan Branch will focus on Pratt & Whitney narrowbody engines, have its own 65,000 lbf test cell and, according to current estimates, a workforce of around 600 qualified employees. “Its close proximity to MTU Maintenance Zhuhai will enable significant knowledge transfer and synergies between the two facilities,” adds Jaap Beijer, President and CEO of MTU Maintenance Zhuhai, who will be managing the two sites upon completion. The new facility will operate under MTU Maintenance Zhuhai and its licenses and approvals.

Both facilities benefit from their proximity to Hong Kong, Guangzhou, Shenzhen and Macao. Service teams can be dispatched to the customers in the region in no time. The current MTU Maintenance Zhuhai shop has an advanced machinery and performs 80 percent of parts repairs in-house. In addition to China Southern, MTU Maintenance Zhuhai serves over 70 customers from China, Asia and around the world, including International Aero Engines, Saudia Airlines and All Nippon Airways, as well as Chinese Shenzhen Airlines, Xiamen Airlines and Hainan Airlines. The new site will also provide MRO to third party customers.

About MTU Aero Engines

MTU Aero Engines AG is Germany's leading engine manufacturer. The company is a technological leader in low-pressure turbines, high-pressure compressors, turbine center frames as well as manufacturing processes and repair techniques. In the commercial OEM business, the company plays a key role in the development, manufacturing and marketing of high-tech components together with international partners. Some 30 percent of today’s active aircraft in service worldwide have MTU components on board. In the commercial maintenance sector the company ranks among the top 3 service providers for commercial aircraft engines and industrial gas turbines. The activities are combined under the roof of MTU Maintenance. In the military arena, MTU Aero Engines is Germany's industrial lead company for practically all engines operated by the country's military. MTU operates a network of locations around the globe; Munich is home to its corporate headquarters. In fiscal 2019, the company had a workforce of more than 10,000 employees and posted consolidated sales of more than 4.6 billion euros.