MTU Aero Engines AG

M&A Activity • May 29, 2007

News Details

Corporate | 29 May 2007 13:08

MTU Aero Engines establishes new factory in Poland

MTU Aero Engines Holding AG / Strategic Company Decision

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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• Plant to be operational by 2009
• Competitive structures for sustained growth

Munich, May 29, 2007 – MTU Aero Engines is going to build a new foreign
location in Rzeszów, in the southeast of Poland. This has been decided by
the board of management of Germany's leading engine manufacturer today. The
new site is intended to develop, manufacture and repair engine components.
MTU will invest about 50 million euros in the new company within the next
three years, which will be named MTU Aero Engines Polska. Starting in 2011,
the cost advantages of the new facility will add some 15 million euros
annually to the group's earnings. The decision still needs approval by the
MTU supervisory board.

Construction of the new factory will begin in autumn of this year, and
production is scheduled to be launched in early 2009. Initially, the
company will have about 100 employees, their number being expected to rise
to about 400 by 2012. The new plant in Poland will focus on the development
and production of rotor and stator blades for low-pressure turbines,
assembly work on low-pressure turbines, and parts repair. Rzeszów is within
easy reach through its international airport and proximity to the other MTU
facilities.

'The new location already has a well-developed industrial environment that
includes further aviation companies and a large potential of qualified,
skilled workers. But our intention is not just shifting work to Poland,'
says MTU CEO Udo Stark. 'Our major goal is to generate further growth
through this new location. Our high-tech activities will remain in
Germany,' emphasized Stark.

Dr. Rainer Martens, executive vice president and COO, explained: 'The
advantages afforded by the location improve MTU's cost position, keeping
the company competitively viable in the years ahead. Competitive structures
enable us to make new investments in engine programs, which in turn means
additional work shared by all locations.'

The addition of the Polish location is part of a comprehensive structural
concept by MTU that optimizes and in part reassigns work at the current
locations, especially Munich, Hannover and Ludwigsfelde near Berlin. In the
coming five years, due to the growth in the commercial MRO business, this
will create additional jobs in Hannover and Ludwigsfelde, while about 100
positions will be shed in Munich. In the process, competencies will be
focused at specific locations: in Hannover, the high-tech repair of engine
blades and vanes; in Ludwigsfelde, the high-tech repair of parts such as
casings, frames and rings; and in Rzeszów, the repair of piping and
honeycomb parts.

With its 7,100 employees, MTU Aero Engines is Germany's leading engine
manufacturer and globally one of the major players in the business. In
fiscal 2006, the company had 2.4 billion euros in sales. In the commercial
area, MTU is the world's largest independent provider of engine services.
In the military arena, it is Germany's industrial lead company for
practically all engines flown by the country's armed forces. Having carved
out leading positions in engine technologies, the company excels in
low-pressure turbines, high-pressure compressors, engine control units, and
manufacturing and repair techniques.

Contact for media representatives:
Eckhard Zanger
Tel.: +49 (0)89 1489 9113
Fax: +49 (0)89 1489 9140

Contact for investors and analysts:
Claudia Heinle
Investor Relations
Tel.: +49 89 1489 3911
Fax: +49 89 1489 99354

DGAP 29.05.2007

Language: English
Issuer: MTU Aero Engines Holding AG
Dachauer Straße 665
80995 München Deutschland
Phone: +49 (0)89 14 89-8313
Fax: +49 (0)89 14 89-95062
E-mail: Inka.Koljonen@muc.mtu.de
www: www.muc.mtu.de
ISIN: DE000A0D9PT0
WKN: A0D9PT
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart

End of News DGAP News-Service

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