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A year of success: MTU Maintenance secures orders valued at 2.1 billion U.S. dollars
• More than 250 contracts and 45 new customers
• Portfolio expansion: more engine types and new services
Hannover, Munich, Germany, March 14, 2016 – In the fiscal year of 2015, MTU Maintenance, the maintenance, repair and overhaul (MRO) arm of MTU Aero Engines, strengthened its position as one of the world’s leading MRO providers. All in all, the company signed more than 250 new contracts. Numerous regular customers reaffirmed their confidence in its capabilities by renewing or extending their existing contracts, and a further 45 companies were added to the customer base. In its role as an independent maintenance provider, MTU signed deals last year valued at around 2.1 billion U.S. dollars, a new record that represents an increase of roughly 25 percent over 2014. MTU Maintenance has recorded an impressive 16,000shop visits since entering into business, which are a testimony to its unrivaled MRO expertise.
MTU Maintenance has over 30 different engine models in its MRO portfolio, more than any other MRO services provider in the world. In 2015, the majority of orders placed with the MTU Maintenance group were for V2500 and CFM56 engine maintenance. The V2500 accounts for around 30 percent of shop visits. MTU is the number one service provider for this propulsion system and expects the V2500 overhaul business to continue growing up to the mid-2020s. As for the CFM56, MTU Maintenance is the world’s largest independent MRO provider with a market share of 11 percent. In 2015, almost one of four engines at MTU was a CFM56. Michael Schreyögg, Chief Program Officer at MTU Aero Engines, says: “With our team and our capabilities, we are uniquely positioned to meet current and future requirements in the commercial engine MRO market. We analyze customer expectations very carefully and offer service solutions geared to their specific needs, to better jointly leverage business potential with them.”
New MRO programs
The competitive edge at MTU is that it works closely with Original Equipment Manufacturers (OEMs) in the engine industry on a risk-and-revenue-sharing basis. By investing in new engine development programs MTU secures long-term access to the aftermarket in the OEM’s service network. Major milestones have already been achieved with the PurePower® PW1100G-JM and GEnx engines. As far as the PW1100G-JM is concerned, the focus has been on developing the maintenance capability of the engine. In December 2015, MTU Maintenance Hannover obtained approval to overhaul the engines powering the A320neo from Germany’s Federal Aviation Authority (LBA). The first shop visits are expected to arrive in the next few years.
In June, the company signed an agreement with its partners in the IAE consortium to expand its cooperation beyond the collaboration on the V2500 engine to include MRO services for the PW1100G-JM geared turbofan engine. This makes MTU a partner in the aftermarket services network for this propulsion system. With the majority of the engines being sold with long-term service agreements, MTU is now set to benefit from these arrangements. Cooperation agreements covering the other PW1000G-family engines will be concluded in a next step. As for the GEnx engine powering the Boeing 787 und 747-8, MTU Maintenance Hannover commenced overhauling turbine center frames in 2015. As approximately 770 GEnx engines are currently in operation, MTU expects to generate three billion euros in revenues from GEnx MRO services in the future.
MTU Maintenance also expanded its service offerings in 2015, adding asset and material management services to its portfolio. The aim is to provide tailor-made and integrated solutions for customers so that they can extract maximum value from their engines – in any phase of the lifecycle. The portfolio of services ranges from the appraisal and analysis of the end-of-life value to the purchase, re-marketing or re-lease of engines including extensive parts management. Services include engine teardown, the repair of reusable material, the storage and reuse of serviceable material, and the sale of surplus or otherwise redundant parts to third-party customers.
As Schreyögg summarizes: “The engine maintenance landscape is changing, calling for closer proximity to customers and more innovative services than ever. We are adding new engine models to our portfolio, developing innovative component repairs and offering highly competitive leasing and asset management products. When customers call us a partner, that’s a huge compliment – it gives the entire team a strong motivational boost to do their best for the customer.”
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 five 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 the fiscal year of 2015, the company had a workforce of some 9,000 employees and posted consolidated sales of approximately 4.4 billion euros.