0V2500_B_0032-MTU.jpg MTU Maintenance

MTU Boosts V2500 Shop Visits in 2017, Eyes Capacity Boost

The Germany-headquartered market leader serviced 306 of the narrowbody engines last year.

MTU Maintenance serviced 306 IAE V2500 engines in 2017, slightly boosting its 2016 total of 296, and is poised to grow its  workload in the years ahead by adding capacity at both its Zhuhai, China joint venture and its recently announced Richmond, British Columbia engine shop.

The Munich-based engine-supplier and MRO specialist handles about 35% of the industry's V2500 overhauls, making it the market leader. It announced the addition of Richmond to its existing V2500 shops in Hannover, Germany and Zhuhai to help meet anticipated demand.

"We had to add this capacity in order to manage the V2500 growth," says Michael Schreyögg, MTU Chief Program Officer. North American operators are expected to generate 25% of the V2500 maintenance demand through 2027, Aviation Week's Commercial Fleet & MRO Forecast shows.

Zhuhai, which focuses on V2500s and CFM International CFM56s, boosted capacity to 300 shop visits per year with a major expansion in 2012. MTU plans to boost capacity by another 50% in the coming years, to handle growth of the venerable narrowbody powerplants, as well as to introduce new capabilities. 

"In the past, we had a situation at MTU where we had shop capacity, which was not sold at the end," Schreyögg said at last month's MTU investor day "Since about a year or so, we have had a situation where we can be a bit more selective and go more of the high-value customers and high-value shop orders."

MTU generates about 30% of its MRO revenue from  OEM-affiliated long-term agreements, and the rest from work directly for operators.

Expansion in China and Richmond will help MTU meet its goal of growing its MRO business 10% annually in the coming years.

The company, boosted by GEnx and V2500 MRO demand, has seen its MRO business grow in excess of 20% in each of the last two calendar years.

Read more about the V2500's aftermarket prospects in the soon-to-be-published January issue of Inside MRO.

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