GE Aerospace Commits $1B To Enhance Global Repair And Overhaul Facilities

GE Aerospace GE has announced plans to invest over $1 billion over the next five years to expand its global Maintenance, Repair, and Overhaul (MRO) and component repair facilities.

This significant investment aims to create capacity to meet the increasing demand for both widebody and narrowbody aircraft engines, enhancing engine test cells and equipment, and integrating technology to reduce turnaround times for customers.

The largest portion of the investment will support the growing demand for CFM LEAP engines, with over 3,300 LEAP-powered aircraft currently in service and more than 10,000 engines on backlog.

Many of these investments are driven by employee efforts to improve safety, quality, delivery, and cost through GE Aerospace’s FLIGHT DECK, a proprietary lean operating model.

A major part of the MRO funding this year will go towards constructing a new Services Technology Acceleration Center (STAC) near Cincinnati, Ohio.

Opening in September 2024, STAC will deploy new service approaches, including advanced inspection technologies to detect issues sooner and reduce airplane downtime.

Also Read: Steering the Course: GE Aerospace Keeps CEO Culp At The Helm Through 2027

GE Aerospace President and CEO of Commercial Engines and Services, Russell Stokes, stated, “Our customers are experiencing strong air travel demand, and we are investing to increase our capacity and efficiency so we can meet their growing needs and keep their planes flying safely and reliably. With this major investment, we are reinforcing our longstanding focus on safety, quality, and delivery for our customers and the flying public.”

GE Aerospace will allocate $250 million in 2024 across its regional repair and overhaul facilities globally to fund expansion, new machines, tooling, and safety enhancements.

The company’s regional investment include, $65 million in the U.S., $55 million in South America, $60 million in Europe and Middle East and $45 million in Asia Pacific.

GE Aerospace’s MRO facilities maintain over 40,000 commercial aircraft engines, providing services that include engine disassembly and reassembly, maintenance, repair, inspection, and testing.

Price Action: GE shares are trading higher by 0.80% at $160.10 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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