Lufthansa Technik and GE select Poland as joint venture site
With an investment of close to $267 million (USD), the new facility will boost economic development in the region and create about 500 jobs
WARSAW, POLAND -- Lufthansa Technik and GE selected the Legnica Special Economic Zone in Sroda Slaska, Poland as the site for its maintenance, repair and overhaul (MRO) joint venture for GEnx-2B and GE9X engines. The location was announced today at a joint press conference with Bernhard Krueger-Sprengel, senior vice president of Engine Services at Lufthansa Technik, and Bill Millhaem, senior executive at GE Aviation, in the presence of Mateusz Morawiecki, Deputy Prime Minister and Minister of Development and Finance for Poland.
The joint venture, called XEOS, will invest about $267 million (USD) in the new facility. Ground breaking on the 350,000 square foot facility will begin in the Spring 2017, and the facility will open in September 2018 with capability to repair GEnx-2B engines that power the Boeing 747-8 aircraft. MRO capabilities for the GE9X, which powers the Boeing 777X aircraft, will be available in 2021. Employment will begin at about 220 and grow to about 500 employees at full capacity.
"For decades, Lufthansa Technik has been known for top quality in the maintenance, repair and overhaul business of engines, as well as aircraft structures and components," said Bernhard Krueger-Sprengel, senior vice president of Engine Services at Lufthansa Technik. "The establishment of the XEOS engine shop with our partner GE is a major milestone in LHT's growth strategy. The facility announced today will create hundreds of technical and high-level jobs for Poland in a further evolving aviation industry."
"We and our partner, along with the support from the Polish government and local authorities, are delighted to announce our latest investment in Poland," said Bill Millhaem, senior executive at GE Aviation. "The facility is designed to be a world-class aircraft engine service center focused on the maintenance, repair and overhaul of GE's technologically advanced next-generation engines. We look forward to moving ahead with the investment and contributing to the economic development in the region and the entire country."
"The fact that Poland has been chosen for a joint project by two global giants as GE and Lufthansa proves once again that our country is open and ready for new technologically advanced projects," said Mateusz Morawiecki, Deputy Prime Minister, Minister of Development and Finance for Poland. "Not only will this investment provide an economic boost to the region and the country, but it will also improve Poland's international prestige and will attract new investors and more opportunities."
The Legnica Special Economic Zone (LSEZ) was selected due to its development potential, economic competitiveness and government support. Moreover, the availability of a highly-skilled workforce was also a key factor in the decision. An intensive cooperation is planned with the Wroclaw Institute of Technology and the local technical schools to help train current and future generation of employees for the joint venture.
The center will mainly service GEnx-2B engines. Close to 500 GEnx-2B engines are in service with 18 operators around the world, and the fleet has accumulated 5 million flight hours with outstanding performance. Compared to GE's CF6 engine, the GEnx engine offers up to 15 percent better fuel consumption, which translates to 15 percent less CO2.
GE9X engines, expected to enter service in 2020, will be the most technologically advanced aircraft engines in their class. Almost 700 GE9X engines have been ordered by customers around the world. GE9X engines are the next step on the way to improved efficiency, lower fuel consumption and lower greenhouse gas emissions.
During the 2015 Paris Air Show, Lufthansa Technik and GE signed a memorandum of understanding to create a joint venture and build a new engine overhaul facility for GE's GEnx-2B and GE9X engines operated by Lufthansa and other airline and cargo carriers. The two parties are expected to finalize certain agreements regarding the joint venture during the first quarter of 2017.
The Lufthansa Technik Group, with more than 30 subsidiaries and associates and over 25,000 employees worldwide, is one of the leading providers of technical support for the aviation industry. Its portfolio encompasses the entire spectrum of services for commercial aircraft: maintenance, repair, overhaul, modification and conversion, engines and components.
GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components, integrated digital, avionics, electrical power and mechanical systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings and is part of the world's Digital Industrial Company with software-defined machines and solutions that are connected, responsive and predictive.