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New supplier from China: MTU Aero Engines cooperates with XAE

• Finished-part procurement value expected to grow to six million euros by 2016

Beijing, China, September 22, 2011 – MTU Aero Engines will soon use finished parts made in China to manufacture commercial engine components. On Thursday, September 22, 2011, Germany's leading engine manufacturer and the Chinese company Xi’an Aero-Engine (XAE) concluded a deal for the supply of 52 finished parts, which will go into commercial engine models. The contract was signed by MTU's Senior Vice President Procurement and Logistics, Theodor Pregler, and XAE's Vice President, Yan Guozhi, at this year's Aviation Expo China in Beijing.

On the occasion of the contract signing ceremony, Pregler said: "We were looking for a reliable supplier in China, and are delighted to work with XAE. This partnership allows us to build our local presence in this key market for the future and, at the same time, to significantly improve our cost structure." The company expects to establish more supply relationships of this type in future. Yan Guozhi said: “The relationship between XAE and MTU adds a new company to our international customer base of aircraft engine manufacturers, and brings a new opportunity to XAE for continuous development. We look forward to working together with MTU for a prosperous future.”

More specifically, the 52 items procured include rotating and stationary rings, disks, and small turned/milled parts. They are destined for use in the commercial engines V2500, GP7000, PW2000 and smaller Pratt & Whitney Canada engines. The first deliveries are scheduled to arrive at MTU in Munich in the course of the first quarter of next year. The value of the procurement contracts is expected to increase to six million euros by 2016. 

Xi’an Aero-Engine plc., an aero-engine R&D base, is one of the major players in China’s aviation industry. The company has broad aero engine and gas turbine production capacity. It vigorously develops offshore / subcontracting production operations. In terms of export earning XAE has ranked top among Chinese aero engine enterprises for years. The company’s management objective is to continually maintain and strengthen the industry leading position of its high-tech aero engine business by relying on technical innovation and management innovation, create high-quality products and services using knowledge and technology, give all shareholders a satisfactory investment return and contribute the to economic boom of the society.

About MTU Aero Engines
MTU Aero Engines, Germany's only independent engine manufacturer, is an established global player in the industry. The company has a workforce of more than 8,000 employees worldwide and, in fiscal 2010, posted consolidated sales of some 2.7 billion euros. A technology leader, MTU excels in low-pressure turbines and high-pressure compressors, as well as in manufacturing and repair techniques. In the commercial area, MTU Maintenance is the world's largest independent provider of engine maintenance, repair and overhaul services. In the military area, MTU Aero Engines is Germany's industrial lead company for practically all engines flown by the country's armed forces.