Lessor Hanwha Aviation Branches Into MRO

Roughly one year after launching its engine leasing business, South Korean company Hanwha Aviation, a subsidiary of Hanwha Group, is broadening its service offering via the purchase of an engine maintenance, repair and overhaul (MRO) facility in the U.S.

“This acquisition represents a foundational step in our vertically integrated approach to engine leasing and asset management,” says Hanwha Aviation chief executive Jeff Lewis. “By incorporating in-house MRO capabilities, we enhance our ability to offer comprehensive, cost-effective solutions throughout the engine life cycle. This move complements Hanwha’s existing strengths in aerospace manufacturing and reinforces our commitment to delivering end-to-end value to our customers.”

Lewis says the latest addition is an FAA- and EASA-certified facility specializing in hospital and on-wing services for a range of engine types, including the CFM56. “In the coming weeks, we will unveil the new name and brand identity of our engine MRO,” he adds.

Hanwha hopes to benefit from its vertically integrated aerospace business, which already includes partnerships with major engine OEMs General Electric, Pratt & Whitney and Rolls-Royce via its engine parts division.

In 2016, Hanwha entered into a joint venture with Pratt to operate a Singaporean manufacturing company as well as a risk-and-revenue-sharing partnership designed to co-build the next-generation aircraft engine. In 2019, it acquired EDAC Technologies, a U.S. aircraft engine component manufacturer, and launched Hanwha Aerospace USA to expand its product portfolio and leverage high-end processing technology.

Lewis’ previous position was at FTAI Aviation, which rapidly built up a portfolio of CFM56 and V2500 engines on the back of its module-exchange program. After Hanwha Aviation’s launch in May 2024, he said his immediate priority was to acquire portfolios of narrowbody engines and aircraft, targeting “newer-generation assets,” striving toward the company’s aim of building a portfolio of roughly 1,000 assets over the next decade.