MTU plans “substantial” investments for new programmes

The German company MTU projects significant growth for its civil aero engine production and maintenance activities in 2014, and aims to fund future programme investment through considerable cost-savings. The commercial engine subassembly manufacturing business is set to show the highest growth rate, with revenues expected to increase 15% year-on-year.

In 2012, the division generated a turnover of around €1.6 billion, or some half the group’s total €3.3 billion revenue. MTU’s civil maintenance business is expected to expand at a high singledigit rate, after the unit’s revenue increased by nearly 17% to €1.3 billion in 2012, including contribution to Pratt & Whitney’s PW1000G family of geared turbofans for the Airbus A320neo and other in-development aircraft and the General Electric GEnx on the Boeing 787, for which “substantial upfront investments into development and production will be required.” Greater focus is being placed on low-cost manufacturing, with the group planning to concentrate all low-pressure turbine assembly work at its Polish production plant.