Winter 2009/ Spring 2010 MEPC: Maintenance in the Desert Kingdom MTU Aero Engines Holding AG Dachauer Straße 665 Technology + ScienceMTU Global Reports 80995 Munich • Germany Tel. +49 89 1489-0 Fax +49 89 1489-5500 www.mtu.de Enhanced cooperation Aiming at high targets Hot and high www.75-years-mtu.de Contents Editorial Cover Story Dear Readers: MEPC: Maintenance in the Desert 4 – 9 Kingdom The economic downturn is continuing to take The growth we anticipate and the acquisition its toll on the commercial aviation business. of additional contracts should subsequently Although MTU Aero Engines is certainly not see us boosting the workforce. At the same Customers + Partners immune to its effects, its robust business time, our cooperation with MEPC is generat- Growing even in difficult times 10 – 13 model is continuing to translate into econom- ing additional business for our Munich plant. An aircraft that adds a whole new 14 – 17 MEPC: Maintenance in the Desert Kingdom ic success. With the defense sector largely dimension unaffected by problems in the economy, our The work with our Arab partners has got off For decades, the Kingdom of Saudi Arabia and MTU have shared a common inter- military engine business is playing a central to an excellent start. The first MEPC techni- est: high-tech for aircraft. The German engine manufacturer has now taken a stake role in ensuring MTU’s stability. cians have already received intensive train- Technology + Science in Middle East Propulsion Company (MEPC). Page 4 ing in Munich and at our Erding facility, and Cool ceramics to cope with hot gases 18 – 21 One of the noticeable trends in this market MTU expertise and know-how has been Enhanced cooperation 22 – 25 Enhanced cooperation over the last few years has been the shift in transferred to Riyadh. I see this as a classic MTU has adopted a new direction for regional emphasis. With European budgets win-win situation, in which our new partners its collaboration with universities declining, we are compelled to seek out new gain top-class expertise in the MRO arena MTU Global and research institutes: The best markets. We have already chalked up some and improve their capacity utilization, while Aiming at high targets 26 – 29 minds are now working together in initial successes and made inroads into the we at MTU strengthen the military side of our seven centers of competence. U.S. military market—which is by far the activities, thereby further boosting our ability Page 22 world’s largest—with our stake in the GE38 to safeguard the future of our company. Products + Services helicopter engine. Upgrading Goliath 30 – 33 Sincerely yours, However, other regions of the world are also important to us; for example, we see the Reports Middle East as being a significant growth Eurofighter Typhoon air power in Styria 34 – 37 region. We have long been established there Hot and high 38 – 41 in the commercial sector and have built up re- lationships with a number of MRO customers. Now MTU has seized the opportunity to enter In Brief 42 – 43 the military arena, taking a 19-percent stake Egon Behle Masthead 43 in Middle East Propulsion Company (MEPC) Chief Executive Officer based in Riyadh. MEPC is the leading provider of maintenance services for military aircraft engines in Saudi Arabia and a key player in the Middle East. Aiming at high targets We now intend to reinforce this position and make it the starting point for further activi- MTU Aero Engines Polska is now up and running. It develops, manufactures and ties in this prospering region. In fact, pros- repairs engine components. Plans are to make the company a center of excel- pects are so good that we have already made lence for the development of uncooled airfoils. Page 26 some concrete plans for expansion: the foun- Hot and high dations of a new, larger plant are due to be laid before the year is out, and we will also be Prior to flight certification, aircraft adding new engine models to the portfolio. are put through their paces. Hot-and- high tests, which take place at air- ports in extreme geographic loca- tions, are conducted to demonstrate engine performance. Page 38 2 3 MTU’s acquisition of a stake in MEPC was ly, all of which have components or modules announced by MTU CEO Egon Behle at this made by MTU on board. The Desert King- year’s Paris Air Show: “This is a first impor- dom’s airline also places its trust in MTU’s MEPC: Maintenance in tant step for us towards building a presence expertise for its maintenance services and in the Middle East, considering that this is a has been a customer of MTU Maintenance region of growing importance. With this Hannover for several years. Collaboration development in mind, we have decided to between the two business partners has been the Desert Kingdom acquire a stake in MEPC.” MTU has been excellent and close ties have been estab- building up an impressive reputation in the lished, with members of the Saudi royal fam- Middle East over a number of years. Govern- ily as well as the airline’s senior manage- ment-owned Saudi Arabian Airlines operates ment having already made several visits to wide-body Boeing jets as well as aircraft the company’s Munich and Hannover loca- from the highly successful Airbus A320 fami- tions. By Odilo Mühling/Martina Vollmuth For decades, the Kingdom of Saudi Arabia and MTU Aero Engines have shared a common interest in equipping aircraft with the very latest technologies. Government-owned Saudi Arabian Airlines and the Royal Saudi Air Force operate ultra-modern fleets, while MTU provides high-tech engine compo- nents and high-quality maintenance services. Now the German engine manufacturer has stepped up its involvement by taking a stake in Middle East Propulsion Company (MEPC), a provider of military maintenance services. 4 Cover Story 5 The Desert Kingdom also seeks out the best materials when it comes to its military oper- Saudi Arabia meets Bavaria ations: the backbone of the fleet of fighter jets flown by the Royal Saudi Air Force (RSAF) Ibraheem Al Yahya is one of the first MEPC This trip to MTU marked the 33-year-old’s will be MTU’s gate to the Middle East, is formed by Tornado multi-role combat air- employees to come to Germany for train- first visit to Germany. He is enjoying his stay which is why I want to learn as much as I craft, which will soon be joined by 72 Euro- ing. Staff at MTU Aero Engines in Munich and getting along extremely well on both a can about the company, the people and the fighter Typhoon jets, one of the most modern and the company’s facility at Erding Air personal and professional level. Within just products.” To help his German colleagues aircraft of its kind. Both these military air- Base helped familiarize the quality engi- three months he has picked up on some who will be going to MEPC, Al Yahya has craft boast top-quality European origins, and neer from Saudi Arabia with the Tornado’s fascinating cultural similarities: “The way drawn up a one-day intercultural training MTU is involved in their production thanks to RB199 engine. He has been particularly im- people greet each other and say goodbye course, since he recognizes all too well that its contribution of high-tech components, pressed with the professional attitude of in my country is actually quite similar to “it is easier for Arabs like me to come to including compressors and control systems. his MTU colleagues: “MTU technicians are that in Bavaria. In both cases we greet peo- the West than vice-versa.” During the train- The newly acquired stake in MEPC has now amazingly knowledgeable, and they know ple with blessings from God and offer to be ing session he told his German colleagues enabled MTU to expand its maintenance ac- how to pass that expertise on in a manner at someone’s service when saying good- all he could about his home country. tivities in the region. that was easy for me to understand. Not bye.” only do they identify defects straight away Middle East Propulsion Company, based in when carrying out repairs, they can also pin- The quality specialist is looking forward to Saudi Arabia’s capital Riyadh, is the only mil- point the source of damage on the spot.” continuing his collaboration with MTU: “We itary engine shop in Saudi Arabia, and it works strictly in accordance with the highest standards of certification. The military main- tenance specialist has a workforce of 65 and The RB199 engine powering the Tornado is repaired and overhauled at Erding Air Base. generates annual revenues of around 60 mil- lion U.S. dollars. MEPC is a joint venture of tion and Information. MTU now holds a 19 To date, MEPC has been providing mainte- Pratt & Whitney’s parent company United percent share in the company; U.S. company nance for the Pratt & Whitney F100 engines Technologies (UTC), Saudi Arabian Airlines Wamar International has also acquired a powering the Boeing F-15 fighter aircraft and Shomoukh Al Hemman for Communica- stake. operated by the RSAF. But its portfolio is now The Royal Saudi Air Force is currently operating a fleet of 84 Tornados. Transfer of know-how among MTU and MEPC employees at MTU’s Erding facility. 6 Cover Story 7 The first Eurofighter Typhoons were ferry flown to Saudi Arabia this summer. demand for fixed and rotary wing aircraft. over the last few years in collaboration with set to undergo a major boost, with the first already successfully completed its training, MTU expertise We are extremely well positioned in both our partners from the German Armed Forces new business coming from components of most of which was carried out at MTU’s facil- product categories, with the TP400-D6 for are really quite unique and in great demand the Tornado’s RB199 engine; 84 copies of ity at Erding Air Base, where maintenance of for Saudi Arabia the new Airbus A400M military transport all over the globe.