German engine specialist MTU has selected a site for its planned component repair shop in Serbia – Nova Pazova, about 25km (16 miles) north of Belgrade airport.

The Munich-headquartered manufacturer and MRO provider says that it will establish a wholly owned local entity called MTU Maintenance Serbia "soon" and has sent a team to the country to prepare the project.

Construction is set to begin later this year, with a schedule to start operations in 2022.

MTU disclosed a memorandum with Serbia's government to establish a repair shop in the country in May.

Serbian prime minister Ana Brnabic gave MTU approvals for the project during a visit to Paris air show, the company says.

"MTU Aero Engines is our partner of choice in forming the nucleus of the future aerospace industry in Serbia," states Brnabic. "We intend to create a dedicated aerospace cluster around MTU's investment, and we are looking forward to attracting further partners."