MTU adds on and on after 'turbulent year for industry'
The annual aircraft engine repair capacity of MTU Maintenance Zhuhai has increased by 50 percent to 450 now that its third expansion is in operation in the Free Trade Zone next to Hengqin. And its fourth expansion in the city – this one to Jinwan – is to open in 2024.
Despite the negative impact of COVID-19 pandemic, production is nearly back to normal. MTU had completed its 3,000th engine repair, a V2500 from China Southern Airlines, by the time the new facility opened. The extension covers 13,600 sqm (146,390 sqft) and includes employee sport and parking facilities.
Jaap Beijer, president and CEO of MTU Maintenance Zhuhai, cited "a turbulent year for our industry." He added, however, that a high level of internationalization, location, and diversified industries in the city have been of great help in developing and expanding business.
New MTU plant in the Zhuhai Free Trade Zone [Photo courtesy WeChat account: MTU-LU]
Founded in 2001, MTU Maintenance Zhuhai is a 50/50 joint venture between China Southern and German manufacturer MTU Aero Engines, and is China's largest and highest-level maintenance base for civil aviation engines. It completed its first expansion in 2012 to increase annual repair capability from 200 to 300.
Expending even further, MTU Maintenance Zhuhai will build a 150,000-sqm (37-acre) subsidiary at Aviation Industrial Park in Jinwan District to repair up to 300 aircraft engines annually. Costing 1.5 billion yuan ($228 million), the subsidiary will focus on Pratt & Whitney narrow-body engines such as the geared turbofan and is expected to generate output value of 10 billion yuan ($1.5 billion).
The aviation support industry led by MTU Maintenance Zhuhai is one of the four "Bond Plus" businesses in the Free Trade Zone and already produces annual operating revenue of more than 10 billion yuan.
MTU provides all-round maintenance services for CFM56, LEAP, and V2500 aircraft engine models. It makes 80 percent of repairs to its inventory of spare parts using world-leading equipment. In addition to China Southern Airlines, more than 70 customers include International Aero Engines, Saudi Arabian Airlines, All Nippon Airways, Shenzhen Airlines, Xiamen Air, and Hainan Airlines.
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