MTU Aero Engines has signed a memorandum of understanding (MoU) with the Serbian Government to establish a new repair facility in the country.

Although the specific location of the proposed industrial site remains unclear at this stage, it is expected to be located in the Belgrade region.

The decision to establish a new dedicated parts repair facility in Serbia is aimed at expanding the company’s current network.

Serbian President Aleksandar Vučić said: “We welcome the general decision of MTU to rely on Serbia for this major investment.

“Serbia provides all necessary resources, as well as highly skilled and motivated people, which are keen to strengthen our country’s footprint in the global aviation industry.”

“Establishing additional capacity in Serbia will best position MTU to provide competitive services to the maintenance, repair and overhaul (MRO) global market.”

The new facility will provide MTU flexibility and also boost its position in the market segment. MTU is involved in engine manufacturing and maintenance services.

MTU Aero Engines chief programme officer Michael Schreyögg said: “The commercial MRO business is increasing continuously and the new repair facility will be a key component of our growth strategy.

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“Establishing additional capacity in Serbia will best position MTU to provide competitive services to the maintenance, repair and overhaul (MRO) global market.

“We strongly believe in the capabilities available in the country. Our site will form the core of a future aerospace cluster, promoting the need for vocational training and the development of high-tech aerospace competences.”

At this stage, decisions are ongoing with the government over the proposed investment.

The planned industrial site is anticipated to become operational in 2022 and will add around 400,000 annual repair hours.

During the first quarter of this year, the company’s revenues witnessed a 11% rise from €1.01bn to €1.13bn.