05/07/2019 | Press release | Distributed by Public on 05/07/2019 05:47
• The company intends to invest in a location in the Belgrade region
• Serbian government support underlined by MoU signature
Munich, May 7, 2019 - MTU Aero Engines AG and the Government of the Republic of Serbia signed a Memorandum of Understanding (MoU) with regard to the company's intention to set up a new industrial site in Serbia today. The Serbian government strongly supports this new venture, which will most likely be located in the Belgrade region. Due to ongoing negotiations, a decision regarding a specific location has not yet been made. MTU, a leading engine manufacturer and one of the world's largest engine maintenance providers, plans to expand its current network with a dedicated parts repair facility. After a carefully considered selection process including sites across Europe, MTU decided in favour of Serbia as the home of this growth project.
'We welcome the general decision of MTU to rely on Serbia for this major investment,' says Serbian President Aleksandar Vučić. 'Serbia provides all necessary resources as well as highly skilled and motivated people, which are keen to strengthen our country's footprint in the global aviation industry.'
'The commercial MRO business is increasing continuously and the new repair facility will be a key component of our growth strategy. Establishing additional capacity in Serbia will best position MTU to provide competitive services to the global market,' says Michael Schreyögg, Chief Program Officer, MTU Aero Engines. 'We strongly believe in the capabilities available in the country. Our site will form the core of a future aerospace cluster, promoting the need for vocational training and the development of high-tech aerospace competences. We are confident we will successfully conclude our current negotiations and become a valuable industrial player in Serbia.'
Maintenance, repair and overhaul (MRO) for commercial aircraft engines is a major driver behind MTU's business success. An additional facility will provide flexibility and strengthen the company's global competitiveness in this promising market segment. MTU performs around 1.9 million repair hours per year at its existing facilities. An additional facility is expected to add approximately 400,000 annual repair hours. The new site will be a 100 percent subsidiary of MTU and is expected to be operational over the course of 2022.
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 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.