Germany-based aircraft engine manufacturer MTU Aero Engines is shifting 30% of its production to low-cost countries and is adding more suppliers as part of its efforts to boost profits and raise output over the next four years.
The engine manufacturer expects an increase in demand as commercial aircraft makers Airbus and Boeing are ramping up their production of A320 and 787 respectively, reports Bloomberg.
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The company predicts that commercial engine production will increase by 45% and sales will grow by 60% over the next four years.
MTU Aero Engines chief operating officer Rainer Martens was quoted by Bloomberg as saying that this posed a significant challenge for supply chain, and in order to avoid any gaps it is adding supplies for core parts.
To increase profitability, the firm is planning to introduce new automation technologies in the low-cost countries, which will not only raise production, but also reduce the need for additional staff.
MTU is currently preparing for boost in production of geared turbofan engines, which are being manufactured by partner Pratt & Whitney, a unit of United Technologies, for Bombardier CSeries jet and Airbus A320neo.
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By GlobalDataPW1500G engine, the first geared turbofan that will power the CSeries jetliner, is scheduled for certification by the end of this month.
The company expects demand for new engines to grow in 2013, driven by geared turbofan engine V2500s, which is being developed with Pratt & Whitney and Japanese Aero Engines for the existing A320 model.
Increased production of both the narrow-body jets and wide-body jets such as Boeing 787 Dreamliner are likely to contribute to the rise in volume for the German firm’s business over the next four years.
MTU is a partner to General Electric for the GEnx engine that powers Boeing 787 and 747-8 aircraft.
The German manufacturer and its partners currently have a backlog of more than 2,900 engines.
Image: MTU Aero Engines expects demand for new engines in 2013 to be driven by geared turbofan engine V2500. Photo: MTU Aero Engines.
