Avio: Agreement with Dutch Ministry of Defence for Partnership on Military Engine MRO Activities at Woensdrecht Center

2011/03/25

Woensdrecht (Holland), 25 March 2011 – DutchAero Services, a Dutch company owned by the Avio Group, signed a public/private partnership agreement with the Dutch Ministry of Defence for the Maintenance, Repair and Overhaul (MRO) of military engines at the Logistics Center Woensdrecht (LCW), that maintains, amongst others, the F-16 aircraft and its F100 engine.

The agreement is unique because the Ministry of Defence will provide a private contracting party access to its infrastructure, tooling and equipment while DutchAero Services will become responsible for the process of the products. With this agreement it is possible to attract work for third party customers and ultimately improve the cost efficiency of the engine maintenance.

The Director of the Defence Materiel Organisation, Mr Lex Hendrichs, and the CEO of DutchAero Services, Mr Ad Verbeek, signed the agreement at the Woensdrecht Airbase.

The agreement is an important step forward for the Dutch Ministry of Defence in order to increase the level of cooperation with industry like DutchAero Services. The main goal of the agreement is to guarantee the current work on the F100 engine till the end of the life of type of the F-16 effectively and finally reduce the costs for MRO involved for the customer, the Royal Netherlands Air Force. A second goal of the partnership is to attract F100 MRO for third party customers.

The partnership will be a fundamental asset of the Dutch “Maintenance Valley Initiative”, a Dutch Government project for the development of the aerospace industry in the south of the Country with the Airbase Woensdrecht as centre for the military aircraft maintenance. The agreement is also important to qualify the Woensdrecht site for a future Regional Support Center for the propulsion system of the replacement of the F-16 aircraft.

With this agreement the Ministry of Defence will preserve the knowledge and expertise of the F100 engine maintenance. This is an important condition to continue the role of smart maintainer/smart buyer in military engines. Also for DutchAero Services, this partnership is important, it will bring along significant development in the activities of the military engine MRO sector. It is also confirmation of the quality of Company’s technologies and competences that, among other things, benefit from the synergy with the Avio Group, an international corporation that has been operating in the civil and military aeronautical sector for over a century, and has a prime position in military MRO at European level.

About LCW

The Logistics Center Woensdrecht (LCW) is part of the Dutch Defence Materiel Organisation where maintenance is carried out on air-based weapon systems and ground-based communication systems of the Royal Netherlands Air Force, Army and Navy.

About DutchAero Services BV

DutchAero Services, a company of the Avio Group operating in the aerospace sector, was selected by the Dutch Ministry of Defence to develop a public/private partnership model and will have its operations at the Logistics Center Woensdrecht.

About Avio

Avio is an international group, leader in the aerospace sector, located in Turin (Italy). Founded in 1908, it is present on 4 continents with commercial offices and 9 industrial production sites. It has 5,200 employees, of which about 4,500 work in Italy. Company revenues in 2009 were € 1.7 billion. The Group operates in 5 main business areas: i) Aeronautical, ii) Space, iii) MRO and Services, iv) Aeroderivative Gas Turbines for Marine and Industrial use, v) Control & Automation Systems and Electrical Systems. It is active in the field of technological R&D through a network of laboratories located on Italian University campuses, and collaborates with 24 Italian and international universities and research centers.

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