MTU Aero Engines and Sagem (Safran group) intend to form joint venture for safety-critical software and hardware development

MTU Aero Engines and Sagem have signed a Memorandum of Understanding (MoU) to form a joint venture in the field of the development of safety-critical software and hardware for military and civil aviation applications. Located at the MTU campus in Munich, Germany, the new company is planned to start its operations in 2012. The 50/50 joint venture will gather some 200 engineers, mainly from the current MTU organization. Main products will include safety-critical engine controls for programs such as TP400-D6 for the A400M military transport aircraft, as well as further safety-critical hardware and software solutions such as controls for landing gear, braking, monitoring or information systems.

"Our intention is to provide a sustainable perspective for our joint hardware and software skills and activities, while military budgets are decreasing. Together with Sagem, through its Safran Electronics Division, the JV can access a wider range of market segments and additional third party business", explained MTU CEO Egon Behle. "The German-French joint venture facilitates an efficient and long-term safeguarding of contractual commitments and offers access to a variety of future development projects in the aerospace and defense industry. Last but not least, the company will offer optimal job opportunities for its employees," said Behle.

According to Philippe Petitcolin, CEO of Sagem, "this Franco-German JV will constitute an important step towards European consolidation of the sector and a high-quality vehicle to better answer to our customers in the context of pan-European programs and projects."