MTU Maintenance excels in healthy engine aftermarket
• Close to USD 4.4 billion in contract wins
• Undefeated expert in independent MRO business
Langenhagen, 21 March, 2019 – MTU Maintenance once again broke records in 2018. The MRO division of MTU Aero Engines AG secured around 4.4 billion US dollars in MRO contract wins, surpassing the 4 billion mark for the first time in its history. Over 300 contracts were signed in 2018, of which 46 were with new engine MRO customers.
“We are delighted with MTU Maintenance’s performance in 2018,” says Michael Schreyögg, Chief Program Officer, MTU Aero Engines. “In particular, with the number of CFM56 contracts won. These made up around a third of our contract wins and cement our position as the world’s number one independent service provider. Our customized solutions are proving a real hit with operators across the lifecycle.”
Success and growth
In 2018, MTU Maintenance’s worldwide facilities were operating at full capacity and the company completed well over1,000 shop visits as well as close to 1,500 events. Including joint venture staff, MTU Maintenance now has more than 5,000 employees across the globe. “I’d like to thank all our employees for their dedication and commitment to achieving these impressive figures,” Schreyögg adds. “They are the backbone of the company and the brain behind the creative solutions we offer customers.”
The highest ever number of engines went through the MTU Maintenance Hannover facility with over 400 shop visits completed. Within the network, around a third of all visits were for the V2500 engine, which is served at its three facilities: MTU Maintenance Canada, MTU Maintenance Hannover and MTU Maintenance Zhuhai. Once again, records were broken for the CF34 program at MTU Maintenance Berlin-Brandenburg, with over 130 shop visits taking place. Airfoil Services (ASSB), MTU’s joint venture with Lufthansa Technik in Malaysia also increased its proportion third party repair to 60%, with the remaining 40% of volume coming from the joint venture partners.
In fact, a record nearly 400 million USD was won by MTU Maintenance in third party repair deals, including parts, accessory and teardown services in 2018. More than 200 third party repair customers were served and 20,000 orders placed . “This success combined with forecast repair demand in coming years is one of the reasons behind MTU’s plan to build a new European repair facility, in addition to the massive capacity expansion taking place at all facilities across our network.,” Schreyögg adds.
MTU Maintenance Lease Services B.V., an 80/20 joint venture with Sumitomo Corp. operating out of Amsterdam also significantly surpassed records in 2018, demonstrating a growth rate of about 37% compared to the previous year in terms of revenue. The company focusses on short-term lease support and asset management and expanded its portfolio in 2018 to include technical asset management services (TAMS). The range of services covers comprehensive technical consulting and fleet management, transitions management and housekeeping support for aircraft engines.
This year, MTU Maintenance will be entering its 40th year of existence and expects to crack the 20,000 shop visit milestone. Alongside the planned capacity expansion of 50% more capacity by 2027, the company will continue hiring more staff worldwide in 2019. “Additionally, Martin Friis-Petersen became our new SVP of MRO Programs at the beginning of this year,” Schreyögg states. “We’re looking forward to innovative product and services development across the entire lifecycle from him and his team in the near future.”
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 5 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 2018, the company had a workforce of some 10,000 employees and posted consolidated sales of approximately 4.6 billion euros.