MTU München, a DASA associate, said at the show it's signed a memorandum of understanding with China Southern Airlines for establishment of a joint maintenance company at Guangzhou. Full details are expected to be finalized by June 1999 to permit operations to begin in 2001.

This first MTU step into the Chinese market will begin with work on the IAE V2500 series of engines, simultaneously offering existing customers the option of a new maintenance base in Asia.

MTU München, together with affiliates MTU Maintenance and MTU Ludwigsfelde, has a workforce of 6,100 and generated DM3 billion-approximately $1.73 billion at current rates of exchange-in consolidated sales last year.

By Paul Jackson