Rolls-Royce and Lufthansa Technik are to locate their c100 million ($133 million) Trent engine overhaul facility near Erfurt in the central German state of Thuringia. Construction is set to begin at the end of next year and the two companies expect it to be completed at the end of 2006.
From 2007, the joint venture - N3 Engine Overhaul Services - will provide technical support for Trent 500, 700 and 900 engines, which power Airbus A340-500/600s, A330s and A380s. R-R and Lufthansa Technik have each invested c50 million in the company.
More than 50% of R-R's revenues already come from after-market services activities, with 16 overhaul sites for 40 engine types across the world. N3 Engine Overhaul Services expects to service about 50 engines in its first year, doubling that total within two years, and offering repairs to engine parts.
Up to 40% of the facility's work will come from maintaining the engines of Lufthansa's fleet, with a similar amount of work expected to come from engines covered by R-R TotalCare agreements in Europe, America and Africa.
John Paterson, managing director of R-R's aero repair and overhaul business, says the Erfurt site offers "the best in logistics, a competitive cost structure and the potential for high-quality manpower".
Lufthansa Technik chief executive August Wilhelm Henningsen cites "excellent infrastructure and a high level of flexibility of working conditions".
A new £30 million ($56 million) repair and overhaul facility is also being built at R-R's repair and overhaul headquarters in Derby, UK.
The company will also be investing £45 million in a similar engine overhaul facility in East Kilbride, Scotland.
N3 Overhaul Services, launched in February 2003, is the fourth joint venture facility between R-R and Trent customers, following alliances with American Airlines, Cathay Pacific (HAESL) and Singapore Airlines.
HELEN MASSY-BERESFORD / LONDON
Source: Flight International
