MTU to expand in Poland

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German engine specialist MTU is expanding its Polish production facility in Rzeszów and planning to concentrate all low-pressure turbine assembly work at the low-cost location.

The Munich-headquartered company is investing around €40 million ($52 million) in a 9,200m² (99,000ft²) extension to the facility, adding about 50% to the current site's footprint. The project is largely driven by the need for capacity to accommodate the production of Pratt & Whitney's PW1000G geared turbofan family, for which MTU supplies the low-pressure turbine and first four stages of the high-pressure compressor.

But the manufacturer will also concentrate all low-pressure turbine assembly work in Rzeszów. This includes programmes such as the International Aero Engines V2500, the PW1000G and various other Pratt & Whitney engines, says MTU.

When MTU increased its shareholding in the V2500 programme in 2012, it rented additional facilities at the southern Polish site. But the respective operations will move into the new building.

Research and development work is to be increased at the new site, too. At the Rzeszów plant MTU specialises in designing uncooled aerofoils, production fixtures and software.

Ground should be broken for the extension later this year, with production operations due to start in late 2014. Full capacity will be reached in 2017, says MTU.

The workforce is to grow from the current 500 to around 750 employees by 2020.

MTU says that the expansion and turbine assembly transfer to the low-cost location will not lead to staff cuts elsewhere. The extension is instead a result of the production ramp-up for several new commercial engine programmes, adds MTU.