Aircraft maintenance company Lufthansa Technik and Germany-based MTU Aero Engines are to established a joint venture (JV) for the maintenance, repair and overhaul (MRO) services of geared turbofan (GTF) engines.
Each company will own a 50% stake in the new JV, which will formed after obtaining approvals from the relevant anti-trust authorities.
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Both parties anticipate that the new JV will be formed by the second half of this year.
Lufthansa Technik executive board chairman Johannes Bussmann said: “For Lufthansa Technik, this move marks another important step in strengthening and expanding its partnerships with reputable engine manufacturers.”
According to the plan, approximately €150m will be invested for the construction of the new facility, which is expected to commence its operations by 2020 and provide jobs for nearly 500 people.
MTU Aero Engines chief programme officer Michael Schreyögg said: “With the new joint venture, MTU is continuing its successful partnership strategy.
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By GlobalData“Lufthansa Technik is the ideal partner for us in this endeavour. By setting up a joint facility, capital investments can be shared and opportunities for synergy and scale generated for both companies. Our objective is to build the most efficient MRO shop for GTF engines around.”
The facility will be able to accommodate more than 300 shop visits of PW1000G-family GTF engines for the Airbus A320neo family of jetliners and other aircraft.
Both companies will also open this new facility at a globally competitive location within or outside Europe in few months' time.
