Pratt & Whitney Canada and AVIC Engine Holdings Create New MRO Facility in China for Civil-Certified PT6A and PW100 Series Engines
BEIJING, China, Monday, September 19, 2011
Pratt & Whitney Canada (P&WC) and China Aviation Engine Holdings Corporation Ltd. (AVIC Engine Holdings) today announced the creation of a new joint venture to be located in Zhuzhou, Province of Hunan, People's Republic of 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."
About Pratt & Whitney Canada
Founded in 1928, and a global leader in aerospace, Pratt & Whitney Canada is shaping the future of business aviation with dependable, high-technology engines. Every second, a P&WC-powered aircraft takes off or lands somewhere in the world. P&WC's engines, with more than 500 million hours in the air, are the industry benchmark for innovative design, dispatch reliability, operating economics and easy maintenance. P&WC is firmly committed to ensuring that its products are designed, produced and operated while minimizing environmental impacts throughout their life cycle.
There are currently more than 47,000 engines in service on over 25,000 aircraft operated by some 10,000 operators in 198 countries. The most extensive support network in the industry, which includes more than 30 company-owned and designated service facilities, supports this global fleet.
P&WC has been taking front-line services to the next level with its Customer First Centre (CFirst). CFirst brings together a multidisciplinary and multilingual support team to resolve issues so that customers can return to service quickly. CFirst handles more than 100,000 contacts every year.
Based in Longueuil, Quebec (Canada), P&WC is a United Technologies Corp. company (NYSE:UTX). UTC is a diversified company providing high-technology products and services to the global aerospace and building industries.
About China National South Aviation Industry Co., Ltd. (SAIC)
AVIC South Aviation Industry Co., LTD, founded in 1951 and belonged to Aviation Industry Corporation of China, is a major supplier of turboshaft, turboprop aviation engines. The company devotes itself to a diversified development, providing products and services of ground gas turbine, optic-mechanical products, automobile parts and components, plane model and car model, etc, for customers in and abroad, and cooperate with international aviation corporations such as Pratt & Whitney Canada, Hamilton Sundstrand in the field of parts and components subcontract business.
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