Czech Republic aeroengine manufacturer Walter Engines is facing a major rationalisation after the purchase of its holding company by an Irish real estate developer, write Julian Moxon and Lubomír Sedlák.
Pembroke, part of Irish company Red Group Property Developers, has acquired a 95.2% stake in Walter, which controls 50% of Walter Engines. Shareholder Stara Holding will retain the remaining 50% in a new joint venture, which should see Walter Engines receive investment to support its growing manufacture, maintenance and repair businesses.
Some observers are concerned, however, that the transaction could mean the end of a long tradition of engine production in the Czech Republic since Walter’s premises in Prague are thought to be worth more than the company. “I certainly hope this has been dealt with in the respective contracts,” says Milan Holl, director of the country’s Aeronautical Research and Test Institute.
Walter Engines managing director Michael Cerny says: “We may have to move, but we expect significant investment in new facilities. We would certainly appreciate being able to continue business in more modern premises.”
Walter employs 450 people and Cerny says the company manufactures and assembles more than 200 new and rebuilt M601 engines a year.
Source: Flight International
