MTU at the Zhuhai Airshow 2018
MTU Aero Engines is represented at the Zhuhai Airshow: With a stand of 120 square meters, prominently placed in the center of the hall and near CAAC, Airbus, GAMECO and Embraer, the company demonstrates its core repair competencies on the V2500. The stand also provides ample space for high-level networking and business activities.
With bilateral trade in goods worth nearly 190 billion euros, according to the German economic publication WirtschaftsWoche, China has been Germany’s most important international trade partner for two consecutive years now. It is also a key focus for the German engine giant, MTU Aero Engines.
But beyond current trade success, China is a key growth market for the future. According to Flightglobal’s fleet forecast, China’s commercial fleet of single-aisle and twin-aisle jets is forecasted to triple from 3,100 in 2017 to 9,400 aircraft in 2037, overtaking the US by the end of the next decade. And from a maintenance perspective, over 35% of the world’s shop visit demand will come from the country by 2027.
No wonder then that MTU Maintenance Zhuhai, set up 17 years ago and already the number one engine shop in China and largest narrowbody shop in Asia, is poised for yet more growth. A shop expansion of 50 percent, taking the yearly capacity to 450 shop visits by 2021 is getting underway.
Besides the strong relationship with Airline customers, MTU has a wide network of relationships with other players in the Aviation and IGT Business. The company has a representative office based in Shanghai that is key to negotiating the local market and coordinating activities in the booming region. For instance, China harbours significant potential for aero-derivative gas turbine applications, in which MTU also specializes through its subsidiary Vericor and its brush team specialists, housed under the brand MTU Power.
- MTU Aero Engines and China Southern extend contract to 2051
- 2,500th engine delivered from MTU Maintenance Zhuhai
Zhuhai, November 6, 2018 – MTU Aero Engines AG and China Southern Airlines have extended their joint venture contract for its joint engine MRO facility, MTU Maintenance Zhuhai, by 20 years to 2051.
“MTU Maintenance Zhuhai is the number one engine shop in China and the largest narrowbody engine shop in Asia,” says Michael Schreyögg, Chief Program Officer, MTU Aero Engines. “We plan to build on this success longterm and this is a clear signal to the market that MTU is committed to Asia.” MTU Maintenance Zhuhai is also in the process of expanding the facility by 50 percent for the second time in less than ten years. Capacity will be increased from 300 to 450 shop visits per year by 2021.
MTU Maintenance Zhuhai is a 50-50 joint venture between the two companies and was set up 2001. It services V2500 and CFM56 engines and the 2,500th engine through the shop, a V2500 has just been redelivered.
Launched with an initial investment of 189 million USD and a capacity of 200 engines per year, the company is spread over 156,000 square meters of land in the Zhuhai Free Trade Zone, close to Hong Kong and Macao. MTU Maintenance Zhuhai is equipped with a state-of-the-art machine pool and a highly modern test cell accommodating engines up to 150,000 pounds of thrust. The shop holds roughly 20 approvals, amongst others from the CAAC (Civil Aviation Administration of China), the European EASA (European Aviation Safety Agency), the US-FAA (Federal Aviation Authority) and the by JCAB (Japanese Civil Aviation Bureau).
Zhuhai, November 7, 2018 – MTU Maintenance Zhuhai signed a number of agreements at the Zhuhai Airshow in China this morning. The first was a five-year agreement with longstanding customer Hainan Airlines for V2500 MRO services. Hainan Airlines and MTU Maintenance Zhuhai have worked together on CFM56 engines for well over ten years and are now expanding their cooperation to include the V2500 engines powering the airline’s A320 fleet.
Furthermore, MTU Maintenance Zhuhai committed to supporting China Southern Air Leasing Company with V2500 teardown and material management services. Cooperation was also intensified with joint venture partner China Southern Airlines, with commitments to providing training for China Southern maintenance and engineering staff regarding on-site repairs. This benefits both parties equally: it enables China Southern to improve its competencies in this area, and MTU Maintenance Zhuhai gains additional flexibility to serve other customers with on-site and AOG support.
Beyond the agreements signed today, contracts were signed with both Vietnam Airlines for V2500 engines and VietJet Air for their CFM56-5B engines earlier in the year. These are MTU Maintenance Zhuhai’s first contracts in Vietnam and a significant milestone in becoming the market leader in Asia.
In total, the above mentioned contracts are estimated to have a value of over 500 million US dollars.
MTU Maintenance Zhuhai is located in Zhuhai's free trade zone and benefits from its proximity to Hong Kong, Guangzhou, Shenzhen and Macao. Service teams can be dispatched to the customers in the region in no time. The Zhuhai shop has an advanced machinery and performs 80% of parts repairs in-house. MTU Maintenance Zhuhai serves customers from China, Asia and around the world and has completed 2,500 shop visits in 17 years of operation. In addition to China Southern, the facility serves over 70 customers, including International Aero Engines, All Nippon Airways, as well as Chinese Shenzhen Airlines and Xiamen Airlines. Last year, over 50 percent of the engines sent in for a shop visit came from airlines based outside of China. The company employs a workforce of around 850 qualified professionals.
November 6th, 2018