MTU Aero Engines Sells US Manufacturing Unit to EDAC Technologies

-- Strategic decision to optimize worldwide production operations -- MTU AENA Engineering to remain part of MTU (Munich, May 18, 2009) -- MTU Aero Engines will pull out of its production activities in the U.S.: Germany's leading engine manufacturer sells the manufacturing unit of MTU Aero Engines North America (AENA) to U.S.-based EDAC Technologies. The contract was signed late last week. The transaction will not affect MTU's revenue and profit forecast for the year, nor will it have an impact on the engine programs pursued jointly with its partners. "We are pleased to have found in EDAC a reliable partner capable of offering AENA Manufacturing excellent development opportunities," said MTU CEO Egon Behle, who went on to explain the reasons of the move: "The sale comes as a result of a review and realignment of our entire production structure." In future, MTU will have less highly engineered components for new engine programs manufactured primarily at its new location, MTU Aero Engines Polska, which will be officially inaugurated on May 20. At MTU AENA's shop in Newington, Connecticut, 120 employees are manufacturing rotating components, such as disks, rings, and shafts. In fiscal 2008, the operation posted sales in the amount of 15 million euros. Starting in June this year, it will become part of EDAC Technologies, a company specializing in serving the needs of engine manufacturers based in the U.S.. MTU AENA's second unit - Engineering - will remain part of the MTU network of companies; based in Rocky Hill, Connecticut, it employs an engineering team of 60 employees who design and develop components for joint MTU/Pratt & Whitney engine programs. With its affiliates Vericor Power Systems and MTU Maintenance Canada, MTU operates two more locations in North America, in addition to MTU AENA. Dominick A. Pagano, President and Chief Executive Officer of EDAC Technologies, commented: "We are pleased with the integration of MTU AENA's manufacturing unit into EDAC. We believe this to be both a strategic and accretive acquisition. Their current product line will complement, broaden and further delineate our Aerospace division". With a workforce of about 230 employees, his company, located in Farmington, Connecticut, manufactures low-pressure turbine casings, rings, disks and other aircraft components. In 2008, it posted sales of some 45 million U.S. dollars. In late 2007, EDAC had already purchased MTU AENA's component repair unit. In some fields, the company will remain among MTU Aero Engines' suppliers and will continue to manufacture disks for the V2500 engine.
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Source: MTU Aero Engines
Date: May 19, 2009