With a total investment of US$189 million in the field of civil construction, sophisticated equipment and inventory, MTU Zhuhai is a half-half joint venture between China Southern Airlines, the largest airline in China, and MTU Aero Engines, an affiliate of Daimler-Chrysler Group. The new premises cover 156,000 square meters (38.5 acres).

MTU Zhuhai will start maintenance and repair work on the V2500 and CFM56 series engines in early December. The capability is designed for 150 engines per year, expanding to 300 engines in the future.

According to its comprehensive technology transfer program, MTU Zhuhai has sent more than 100 technicians and experts to Germany for extensive on-job training intended to guarantee the same uncompromising quality standards to be reached in Zhuhai.

Klaus Steffens, president and chief executive officer of MTU Aero Engines, said: "This important milestone underlines our firm intention to expand our maintenance business in China. The proximity of the new company to Hong Kong and Macao enables easy transportation for works from other Asian countries."

The joint venture enabled MTU to enter the high-growth Chinese market, appreciably boost China's maintenance capacities and widen the range of products supported on a global scale.

China Southern Airlines in turn profited from the infusion of technology from a global leader in maintenance provision and could build its overhaul capacities while cutting maintenance costs, said Wang Changshun, general manager of China Southern Airlines.

MTU Aero Engines is the fifth biggest engine manufacturer in the world and the world's biggest independent provider of commercial maintenance services.

(Xinhua News Agency November 6, 2002)