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Todd Kallman, Shanghai Engine Center Grand Opening

SHANGHAI, China, September 2009

'This engine center is an excellent example of advanced technology being deployed in a strategic market to help our customers reduce costs and turn-around time. We will be able to overhaul 300 engines a year and test an engine with up to 75,000 pounds of thrust; now, that’s progress.'

Transcript

Thank you, and good morning to all. I am honored to have so many well-respected guests in attendance today. I recognize this is due in large part to the outstanding reputation of our distinguished partner in this project, China Eastern Airlines. To Chairman Liu and your entire organization, a heartfelt thank you.

We also extend our sincere appreciation for the support that the CAAC has provided on this project. We look forward to continuing work with the CAAC to grow with the China market, and we are committed to compliance with all regulatory requirements to ensure the highest level of safety.

I would also like to thank the Shanghai municipal government for its valuable support during the various stages of this project. We are proud to be part of the growth story of this great city, and I am confident this joint venture will contribute to the further development of Shanghai as an aerospace industry base.

More than 80 years ago when a plane powered with a Pratt & Whitney Wasp engine transported mail between Shanghai and Hankou, it would have been hard to imagine today’s celebration. The Pratt & Whitney engines of today are as dependable as they were back then, but technology has evolved in a way that was unimaginable. This engine center is an excellent example of advanced technology being deployed in a strategic market to help our customers reduce costs and turn-around time. We will be able to overhaul 300 engines a year and test an engine with up to 75,000 pounds of thrust; now, that’s progress. I also don’t know if years ago it would have been possible to predict the wonderful partnership that we have established with China Eastern Airlines and other organizations in the country such as AVIC and Chengdu Engine Group. I’d be remiss if I did not take this opportunity to let you know that we share in the excitement of the C919 large commercial aircraft and hope we have the opportunity to strengthen our ties with China and its aviation industry on this program.

While this engine center is new, our presence in China is not. In 1996 we opened our first joint venture manufacturing facility here, and since then, we added two more manufacturing plants, a customer training center and a management office in Shanghai.

This engine center helps Pratt & Whitney reach our potential as the world’s largest independent provider of service for CFM56® engines. Partnering with China Eastern Airlines, which is the largest CFM56 operator in the Asia-Pacific region, is an important strategic element. We are very grateful for the long term maintenance service agreement between China Eastern and Pratt & Whitney that will reside here.

While China Eastern Airlines brings a base load to this new facility, which is designed to overhaul CFM56-3, -5B and -7 engines, we bring decades of experience with jet engine technology as well as our proven ACE operating system. ACE stands for Achieving Competitive Excellence, and it is this customer-focused operating system that allows us to achieve world-class levels of customer satisfaction, delivery, employee engagement, environmental, health and safety performance, financial performance and quality.

I am especially proud that this facility was designed and constructed to the highest standards set by the U.S. Green Building Council. This illustrates Pratt & Whitney’s unwavering commitment to leading environmental performance, whether through technology such as our advanced PurePower engine and its geared turbofan technology that cuts fuel burn, emissions and noise, or through reduced energy consumption and water that this building will use.

Thank you.

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