AndrzejJeziorski/ MUNICH

Daimler-Benz Aerospace (DASA) aero-engine subsidiary MTU Munich and Swedish power plant manufacturer Volvo Aero are on course to achieve closer co-operation in civil-engine programmes.

In a memorandum of understanding (MoU) signed on 10 December, the two companies have agreed to intensify their links in the civil field to make the best use of their respective design, development and production capabilities.

To date, the companies have co-operated only indirectly through Pratt & Whitney and GE power plant programmes, such as those of the PW2000, JT8D and CF6 turbofans, in which they have shares.

According to MTU, the first step will be to bring Volvo into the PW4084/90/98 projects, in which MTU participates because of its strategic partnership with the US manufacturer. To date, MTU has had a 12.5% share in the PW4000, of which 4% will now be handed over to Volvo in a move to streamline capacities.

Under the MoU, Volvo will concentrate on casings work, while MTU will focus on blades, vanes, discs and rings. The German company says that further joint projects are now being planned, including possible research co-operation.

The companies say that they expect "substantial" long-term cost savings through their co-operation, without either partner losing its technological core capabilities in the areas affected. MTU will continue to manufacture military-engine casings.

Volvo Aero president Arne Wittlöv welcomes the MoU as "-an important step to enhance European efficiency and competitiveness to better meet overall customer demand for low cost and high quality".

Separately, MTU says that its savings programme has progressed more quickly than expected, and that the company is now heading for a profit in "double-figure millions" of German marks for 1996. If the result, is achieved it would represent the company's first year-end profit for five years.

Source: Flight International