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The company is to invest 34 million dollars in its Mexican affiliate

ITP acquires Mexicana de Aviación’s stake in ITR, taking its total holdings to 99.98%

Through its affiliate ITP Mexico, Industria de Turbo Propulsores, S.A. (ITP), has acquired the 25% stake that Mexicana de Aviación held in its affiliate Industria de Turborreactores (ITR), based in Querétaro (México). This deal means that ITP now controls 99.98 of ITR.

The acquisition of the Mexicana de Aviación stake in ITR falls within the framework of the strategic initiative to increase the Mexican affiliate's involvement in the activities of the ITP Group with the threefold aim of developing in-house engineering and manufacturing capacity in a dollar zone, developing a low-cost centre to boost the ITP Group's competitive edge and increasing the Group's access to the American market.

ITR, which currently employs a staff of 430 workers, has operated up to now as a maintenance centre specialising in commercial engine maintenance (mainly the JT8D), and as a platform for industrial repair business in the US.

Since 2002, ITR has been providing support to Industria de Tubería Aeronáutica (ITA), in which ITP is the sole shareholder, in their activities manufacturing aeronautic tubing as a low-cost centre and as a support to engineering activities in Spain. In 2008, ITR started manufacturing parts for the HTF7000 programme (a business aviation engine) in which ITP is a partner.

Integration and Investment

The acquisition allows for the integration of ITR within the Group while also developing a number of strategic actions, such as the development of ITR as a design centre; the development and manufacture of static engine parts for business aviation (small scale aircraft); the evolution of ITR as a centre for the design, development and manufacture of parts for Trent engines and twin aisle aircraft (interstage seals); and the development of ITR as a low-cost engineering support centre for the ITP Group in the fields of turbomachinery, external elements and software development.

All of these activities had been laid out in the ITP Group's industrial plans (The 'Global 400 Plan', aimed at doubling the Group's capacity for turbine manufacture and delivery as part of its 'Make-Buy' strategy) and in the plans it has made to develop its engineering capacities (the 'Do-Buy' strategy).

In order to achieve this, the plan is for a 34-million dollar investment aimed at boosting manufacturing to 240,000 hours a year and increasing staff numbers to 100 employees. In parallel with these initiatives, ITR will carry on with its activity as a repair centre for the JT8D and for industrial turbines and will continue to provide support to ITA in its tube manufacturing.

Note to the editor

ITP Aero is currently the ninth largest aircraft engine and components company in the world by revenue. Ranking among the top one hundred companies in the aerospace industry (Top 100 Aerospace Companies, PwC and Flight International). The company employs over 3,500 people at its production centres in Spain, United Kingdom, Mexico, the United States, Malta and India.

ITP Aero includes among its activities the design, research and development, manufacturing and casting, assembly and testing of aeronautical modules and engines. It also provides MRO services for a wide range of engines for regional airlines, business aviation, helicopters, industrial and defense applications. ITP Aero operates as a corporate entity within the Rolls-Royce group.

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