Lufthansa Technik opens New Engine Overhaul Center in Hamburg

HAMBURG, GERMANY -- Lufthansa Technik AG officially opened its new overhaul center for engines in Hamburg today, thus extending its production capacity in Germany. The first engines will be overhauled there in early 2009.

Nearly 50 million euros have been invested in the new building since the end of 2007. Hamburg's annual capacity for overhauls will increase from the present 320 to over 400 engines. By commissioning the new facility, the company is making a significant contribution to securing the more than 2,000 engine maintenance jobs at the Hamburg site over the long term.

Senator Gedaschko, State Minister of economic and labour affairs of the Free and Hanseatic City of Hamburg, said on the occasion of the opening ceremony: "The new engine overhaul center confirms Germany's role as a production location, and is a symbol of the dynamic, economic power of Hamburg as a multi-faceted aviation site. The center is a signal of trust -- in the aviation site Hamburg and in the competence of its staff. It is a ticket to the future. This is a special day in my calendar in my role as Senator of Commerce."

August Wilhelm Henningsen, Chairman of the Executive Board at Lufthansa Technik AG, commented: "In order to secure our profitable growth in the long term, we are making considerable investments in qualifying our staff and installing the latest production systems and processes, both of which are decisive foundation stones for future success on the market. The new engine overhaul center at the corporate headquarters in Hamburg is an important building block in the expansion of this high-turnover business segment."

Henningsen continued: "The new building was completed on time and within the agreed budget, for which I would like to express my sincere thanks and appreciation to the project team and all companies involved. And to our team on-site, who will now set to work here: I wish you every success for the future."

Construction work on the production site began in October last year. Covering a surface area of 15,000 square meters in total, the new overhaul center offers the possibility of setting up production facilities and processes for engine maintenance according to the latest standards and concepts. Processing times for engines will be further reduced in connection with an optimized logistics system, for which a good 9,000 square meters of production area and about 1,500 square meters of logistics space will be available from now on. The building complex also includes just under 9,000 square meters of office and service areas, and will accommodate some 700 employees overall.

The new center specialises in overhauling engines of the type CFM56, one of the world's most successful engine models which is used to power such aircraft as the Boeing 737 and a large part of the Airbus A320 family. Up to 250 of these engines can now be serviced annually by Lufthansa Technik in Hamburg.

Flexible working time models have been agreed upon with the works council, which -- together with clearly structured processes and demand-oriented schedules -- will play an important part in boosting productivity by up to 15 percent.