MTU Aero Engines will soon use finished parts made in China to manufacture commercial engine components. On Thursday, September 22, 2011, Germany's leading engine manufacturer and the Chinese company Xi'an Aero-Engine (XAE) concluded a deal for the supply of 52 finished parts, which will go into commercial engine models. The contract was signed by MTU's Senior Vice President Procurement and Logistics, Theodor Pregler, and XAE's Vice President, Yan Guozhi, at this year's Aviation Expo China in Beijing.

On the occasion of the contract signing ceremony, Pregler said: "We were looking for a reliable supplier in China, and are delighted to work with XAE. This partnership allows us to build our local presence in this key market for the future and, at the same time, to significantly improve our cost structure." The company expects to establish more supply relationships of this type in future. Yan Guozhi said: "The relationship between XAE and MTU adds a new company to our international customer base of aircraft engine manufacturers, and brings a new opportunity to XAE for continuous development. We look forward to working together with MTU for a prosperous future."

More specifically, the 52 items procured include rotating and stationary rings, disks, and small turned/milled parts. They are destined for use in the commercial engines V2500, GP7000, PW2000 and smaller Pratt & Whitney Canada engines. The first deliveries are scheduled to arrive at MTU in Munich in the course of the first quarter of next year. The value of the procurement contracts is expected to increase to six million euros by 2016.