The current global economic uncertainty has forced a review of the operations and  production activity of Industria de Turbo Propulsores, S.A (ITP). An Action Plan has already been established, which will be discussed with the company's unions and the suppliers in order to collaborate in finding solutions from today onwards.

Resulting production issues indicate the loss of 180,000  working hours in 2009 representing an overcapacity equivalent to 125 direct workers within manufacturing activity at Zamudio over a period estimated at 18 months. The corresponding overcapacity and its equivalent to indirect workers has yet to be determined. Similarly, an evaluation will have to be made of the effects that the adjustment may have on Precicast Bilbao (PCB) and the aeronautical tubing manufacturer ITA, both of which belong to the ITP Group.

In the face of this loss in workload, which results from ongoing programme delays to the Airbus A380 and Boeing 787, an action plan has been established which will affect both the internal organisation and the supply chain. ITP management have called a meeting with workers' representatives and through this and similar meetings with the Plenum of the company committees from Ajalvir and Zamudio, will analyse the situation with the aim of reaching a consensus on the measures to be put in place.

Thus, as a result of the new planning, the financial capacity of the company to invest in R&D for the new development engine programmes can be severely affected in a negative way.

Latest acquisitions

In spite of this overall cut in workload, ITP is continuing with its growth plan, which has led to the recent agreement for the acquisition of Alstom Aerospace and of Maintenance and Repair group Aeromaritime. This has meant staff increases of more than 230 workers in the last year.

In October, ITP agreed the acquisition of Alstom Aerospace, a company dedicated to engineering services and the design and manufacture of turbo-machinery and aeronautical software. Alstom Aerospace was a division of Alstom Ltd, an affiliate in which Alstom S.A. held a 100% stake. The acquisition was carried out through ITP Engines UK Limited in which ITP is the sole shareholder.

ITP's need to correctly size its activity in the field of helicopter engine maintenance led to the acquisition of Aeromaritime. This company brought the incorporation into the ITP Group of three new work centres in Malta (Aeromaritime Mediterráneo), in Mesa, Arizona in the US (Aeromaritime America), and in Portsmouth in the UK (Component Repairs & Overhaul).

Not only does the acquisition of Aeromaritime consolidate and strengthen the group's position in the worldwide helicopter engine maintenance market, it also complements the organic growth of the ITP Group in Albacete (ITH), which will be operative in 2009 in the Aeronautics Park of that city.

Initially, the project is expected to generate up to 80 jobs, including qualified maintenance technicians, assembly workers and executive officers to manage the tasks to be carried out. The proposed installations will be based within a 5,000 square metre area, potentially expanding to 7,000 in response to future growth, and the platform which is to be initially constructed will cover 2,600 square metres.