An Eventful History: A Company with a Tradition and a Future

From the dawn of aviation to the era of modern engine technology – MTU has seen the entire history of aviation. In the course of the 100-year history of powered flight, it has been playing a major role in driving progress of aircraft engine development.

MTU Aero Engines GmbH is a successor to BMW Flugmotorenbau GmbH, which was established in 1934. That company had its origins in Rapp Motorenwerke, which was founded in 1913 by flight pioneer Otto Rapp on Munich’s Oberwiesenfeld and was renamed BMW in 1917 and BMW Flugmotorenbau GmbH at the end of 1934. In 1938 the company moved to Munich-Allach, where MTU Aero Engines is located to this day.

At the end of World War II, Germany was compelled to quit aircraft engine building. The Allach engine factory was turned into a repair shop for US military vehicles. This phase lasted until the mid-1950s. 1954 marked the beginning of a new political era in Germany, and aircraft engine production was resumed. BMW Studiengesellschaft für Triebwerkbau GmbH was founded in 1954 and BMW Triebwerksbau GmbH in 1957. The latter reentered engine manufacture under license agreements. In 1959, it started building, under license, General Electric’s J79-11A engine for the Lockheed Starfighter F104.

In 1960, M.A.N. took over a 50% share of BMW Triebwerksbau GmbH and picked up the remaining 50% share five years later; with this move, BMW exited the aero engine business altogether. BMW Triebwerksbau GmbH was merged with M.A.N. Turbomotoren GmbH and renamed M.A.N. Turbo GmbH. The new company won orders for the license manufacture of the Rolls-Royce Tyne engine, which powers the Breguet Atlantic marine reconnaissance/antisubmarine warfare aircraft and the C-160 Transall airlifter.

In 1969, Motoren- und Turbinen-Union München GmbH, or MTU München for short, was founded. The move came in the wake of an agreement between Daimler-Benz AG and M.A.N. AG to merge their respective aircraft engine and high-speed diesel engine activities. In the process, MTU München (aircraft engines) and MTU Friedrichshafen (diesel engines) were formed, with the latter to become a directly-managed DaimlerChrysler subsidiary later, in 1995. 1969 also marked the launch of development of the Tornado engine RB199-34R. This engine is MTU’s most successful military engine program to this day.

In the 1970s, MTU increasingly complemented its military engine activities with development work on commercial engines. In1971, MTU entered the commercial engine business and concluded a cooperation agreement with General Electric on the manufacture of the CF6-50 engine for the Airbus A300.

In 1979, the growing demand for engine repair, maintenance and overhaul services prompted the formation of MTU Maintenance Hannover at Langenhagen. With this move, MTU launched into the commercial engine maintenance business, creating a new business unit.

In 1985, MTU became a wholly-owned Daimler-Benz AG company. That year, it started collaborating with Pratt & Whitney Canada. In 1989, MTU became part of Deutsche Aerospace AG (Dasa), the organization that combined practically all of the German aerospace industry under its roof.

In 1991, MTU began expanding its network of maintenance locations and acquired MTU Maintenance Berlin-Brandenburg and Airfoil Services Sdn. Bhd. in Kuala Lumpur, Malaysia. That same year, MTU and Pratt & Whitney signed an agreement on their strategic alliance for cooperation in the commercial turbine engine segment, which gave MTU a right to participate in Pratt & Whitney’s commercial engine programs.

In 1992, MTU Maintenance Berlin-Brandenburg set up the Pratt & Whitney Canada Customer Service Centre, a joint venture with Pratt & Whitney Canada, in Ludwigsfelde.

In the mid-1990s, the world economy moved into turbulences caused by the first war in Iraq, an oil crisis, and a weak dollar. Commercial aviation saw a drastic collapse. MTU, too, was hard hit by the crisis. The company was quick to react to the challenge and emerged from the downturn in 1996.

In November 1998, MTU acquired MTU Maintenance Canada. Also added to its global locations were MTU Maintenance do Brasil and MTU Aero Engine Design and Vericorin 1999, MTU Maintenance Zhuhai in 2000, and MTU Aero Engine Components in 2001.

In the year 2000, Dasa was incorporated into the European Aeronautic Defense and Space Company, or EADS. MTU München became a wholly-owned subsidiary of DaimlerChrysler and was renamed MTU Aero Engines. In 2002 a development and design center was opened in Ludwigsfelde. Development work is now done at three locations: Munich, Rocky Hill, Conn., and Ludwigsfelde.

In 2003, the company pooled its activities in the US market, merging MTU Aero Engine Design and MTU Aero Engine Components under the roof of MTU Aero Engines North America (AENA). Early that year, MTU was awarded the 23rd Innovation Award of the German Industry for the high-pressure compressor it developed for the PW6000.

In 2004, DaimlerChrysler sold MTU Aero Engines to Kohlberg Kravis Roberts (KKR), a global private equity company, following negotiations that had lasted for almost a full year.

MTU Aero Engines’ successful initial public offering followed in June 2005. The listing on the stock exchange increased the equity capital of MTU to more than €500 million. That put MTU on a sound financial basis for the future. In early February 2006, KKR sold all of its 29 % share it had retained in MTU after the IPO. With this move, MTU had reached an important strategic goal: being a stand-alone company.

 

 

Standard engine of many historic German aircraft: the BMW VI.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The EJ200, engine for the Eurofighter, is considered the most advanced engine in its class.

 

Date: 24 05 2006