Strategy

In all of its businesses, MTU Aero Engines is pursuing a strategy of long-term growth. This strategy is designed to strengthen the strategic position of the company and to further expand it swiftly by driving profitable growth. The sustainable engine and service portfolio, stable and long-term customer relations, motivated employees and a global presence in growth markets lay the groundwork for future growth.
The corporate strategy bases on five pillars, which are explained in more detail below.

5 Säulen

Extension of technological leadership

Against the backdrop of the progressing climate change and increasing kerosene prices, new engine programs focus on environmental compatibility and cost efficiency. In close cooperation with partners from industry and research, MTU is working on the development and implementation of innovative, cost-effective and environmentally friendly engines. With its efforts, the company is further strengthening its leading technological position. A case in point for innovative engine technology is the geared turbofan engine, on which the fan and the low-pressure turbine are decoupled through a gearbox. This permits both components to run at their respective optimum speeds, which results in a reduction in fuel consumption and noise levels. In its engine maintenance activities, too, MTU is expanding its technological leadership, developing as it does innovative, cost-efficient repair techniques.

Participation in the fastest-growing new engine programs

The long life cycles in the engine business call for the company to take stakes in promising future programs early on. In this manner, MTU secures its excellent market position in the commercial and military engine arena. In the commercial engine business, participations in new propulsion systems for envisaged long-haul aircraft and for narrowbody aircraft take center stage. The entry into the GEnx program for the Boeing 787 Dreamliner long-range airliner is a case in point, illustrating the company's successful efforts to implement the strategy. With the decision by Airbus to use the PW1100G as one of the two new engine options for the A320neo, the re-engined version of the successful A320 family, MTU has achieved this strategic target in the narrowbody market as well.

Improving economic competitiveness

With its "Challenge 2010" cost cutting program which was introduced in 2008, MTU wants to save 50 million euros a year as of 2011. In 2010, savings in the amount of 30 million euros were already achieved, the remaining 20 million euros will be yield in 2011. The program aims to reduce the product costs and to optimize production processes. Moreover, the company will take additional measures to increase productivity and optimize production in all areas. One of the measures taken to improve cost competitiveness is the setting-up of the new location in Poland; the company started to develop, manufacture and repair engines in April 2009.

Strengthening core activities by moving into related lines of business

In a continuous process, the company is exploring options to acquire business related to its core business to further improve its competitiveness. Whenever profitable growth opportunities are identified, MTU invests into related products and services.

Investigating the potential for new acquisitions

MTU is continually looking for opportunities to pursue acquisitions to support its growth targets. In addition, the company seeks to gain access to other regional markets offering growth potential. Potential acquisition candidates are scrutinized against strict standards. Only if the strategic positioning is right and stringent financial criteria are met will the company go forward with an acquisition.