MTU Aero Engines is expanding its presence in China and has signed a memorandum of understanding with AVIC Commercial Aircraft Engine (ACAE).

MTU and ACAE will jointly explore options for building a domestic aircraft engine industry in China.

The study will evaluate what engine company structure would be viable and what technologies will be needed for emerging engines to be successful in the Chinese market.

MTU CEO Egon Behle said that the firm’s objective is to further solidify and enhance its position in the Chinese engine industry.

The services to be provided by MTU will be coordinated through its recently opened Shanghai office.