PARIS - MTU takes a stake in Saudi engine company

According to MTU CEO Egon Behle, a contract has already been signed: "This is a first important step for us towards building a presence in the Middle East, considering that this is a region of growing importance. With this development in mind, we have decided to acquire a stake in MEPC."

MEPC is a joint venture between United Technologies International Corporation a subsidiary of United Technologies Corporation of which Pratt and Whitney is a division, Saudi Arabian Airlines and Shomoukh al Hemman for Communication and Information Co. Ltd.. It specialises in the maintenance of aircraft engines. Its major customer is the Royal Saudi Air Force (RSAF), which has the Pratt & Whitney F100 engines powering its Boeing F-15 fighter jets maintained by MEPC. The company plans to expand its maintenance portfolio to include modules of the Tornado's RB199 engine and the Eurofighter's EJ200 engine as well as the T-56 for the Bell UH-1D helicopter and the PT6 that powers various helicopters and propeller aircraft. Another new stakeholder alongside MTU is U.S.-based Wamar International.

With a workforce of 7,500 people, MTU Aero Engines is one of the major players in the engine business worldwide. In fiscal 2008, the company posted more than $3 billion  in consolidated sales. In the commercial area, MTU is the world's largest independent provider of engine maintenance services. In the military arena, it is Germany's industrial lead company for practically all engines flown by the country's armed forces.

MTU Aero Engines will also benefit from the Etihad Airways engine announcement this week that it will equip ten Airbus A380s on firm order and another ten on option with GP7000 engines, in which MTU has a stake of 22.5 percent.