Industry MTU and China Southern extend joint venture for maintenance facility by 20 years

The new deal will be effective until 2051 and is a joint venture between MTU Aero Engines AG and China Southern Airlines. The joint venture is about the both company´s joint engine MRO facility MTU Maintenance Zhuhai.

MTU Maintenance Zhuhai is a 50-50 joint venture and was initially set up back in 2001. Currently, the facility services CFM46 and V2500 engines. According to MTU, the 2,500th engines has just been redelivered.

For the second time in less than ten years, the Zhuhai facility is currently in the process of expanding the location by 50 percent. By year 2021, the capacity is expected to be increased from 300 to 450 annual shop visits.

Michael Schreyögg, Chief Program Officer at MTU Aero Engines said: “MTU Maintenance Zhuhai is the number one engine shop in China and the largest narrowbody engine shop in Asia [...] We plan to build on this success long-term and this is a clear signal to the market that MTU is committed to Asia.”

Equipped with state-of-the-art machines, MTU Maintenance Zhuhai has the capability of testing modern engines with up to 150,000 pounds of thrust. The shop was initially opened with an investment of US$ 189million and a capacity of 200 engines per annum. It furthermore holds 20 approvals of authorities like the CAAC (Civil Aviation Administration of China), the EASA (European Aviation Safety Agency), the US-FAA (Federal Aviation Authority) and the JCAB (Japanese Civil Aviation Bureau).

MTU Aero Engines is a German leading engine manufacturer. The company has established various partnerships, which make MTU one of the most important companies in the new engine market. One third of the global aircraft fleet relies of MTU supplied components. MTU is among the world´s top 5 maintenance providers for commercial aircraft engines. The company is headquartered in Munich, Germany, and employed 10,000 people in 2017.