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Pratt & Whitney Canada create new MRO facility in China

The new maintenance, repair and overhaul (MRO) will be called Zhuzhou Tonghui Aero Engine Maintenance Company (AEMC) and will provide in-country maintenance, repair and overhaul for civil-certified PT6A and PW100 and series engines. The joint-venture-agreement signing ceremony was attended by John Saabas, President, Pratt & Whitney Canada, Pang Wei, President, AVIC Engine Holdings and Li Zongshun, President, China National South Aviation Industry Co., Ltd. (SAIC). P&WC is a United Technologies Corp. (NYSE:UTX) company.

AEMC will provide MRO services to civil-certified PT6A and PW100 engines installed on civil turboprop aircraft operating in the People's Republic of China and on civil-certified PT6A and PW100 engines installed on Chinese Original Equipment Manufactured civil turboprop aircraft operating in the Asia-Pacific region. Capability will be created in phases, starting with line maintenance, followed by heavy maintenance and, finally, overhaul. Currently, P&WC has some 180 PT6A and PW100 engines flying in China on Y12 and MA60/600 turboprop aircraft.

"China is obviously a key emerging market for P&WC and AEMC will allow us to provide PT6A and PW100 MRO services quickly and efficiently in the country to enhance our market reach," said Mr. Saabas. "AVIC Engine Holdings is our customer, supplier and long-term business partner and we are pleased to expand our collaboration into the turboprop area."

The joint venture will be legally structured through SAIC's subsidiary – General Aviation Engine Company (GAEC) and UTC's subsidiary – United Technologies Far East (UTFE). AEMC will be owned 75 per cent by GAEC and 25 per cent by UTFE. The joint venture agreement is for 25 years with an option for renewal. AEMC's board of directors will consist of AVIC representatives and P&WC representatives. P&WC will appoint its general manager and AVIC, the chief financial officer. The remainder of the management team will be jointly selected by the joint venture partners.

"AEMC will enable operators of PT6A- and PW100-powered aircraft in China to benefit from in-country engine services – from line maintenance to overhaul – providing them with faster turnaround times and lower costs," said Mr. Saabas. "It will also position us to expand our MRO market in the coming years as our engine fleet grows in the region."

"AVIC Engine Holdings and P&WC have a long history of co-operation," said Mr. Pang, President, AVIC Engine Holdings. "Today, we extend our co-operation into the field of MRO services for civil aviation engines. We believe that our strong collaboration will better serve the Chinese civil aviation market and provide more convenience and efficient services for our end users."