GE Aerospace to Invest $1 Billion in MRO Capacity

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Engine manufacturer GE Aerospace has revealed plans to invest more than $1 billion to enhance its maintenance, repair, and overhaul (MRO) capabilities. This major investment is designed to meet the anticipated rise in demand for aftermarket services as airlines seek to prolong the lifespan of their aging fleets.

Over the next five years, the investment will be used to expand MRO sites worldwide by adding new engine test cells, upgrading equipment, and incorporating advanced inspection technologies. This initiative is part of GE Aerospace’s broader strategy to cut turnaround times at its service centers by 30% for its clients.

A significant portion of the funds will be dedicated to facilities that service LEAP engines, which are exclusively used in Boeing’s 737 MAX and also power Airbus’ A320neo aircraft. Although GE Aerospace had earlier revised its 2024 LEAP engine production forecast downward, the company increased its earnings outlook due to a growing demand for spare parts and MRO services.

GE Aerospace, which produces LEAP engines through its joint venture with Safran Aircraft Engines, CFM International, reported a 9% rise in first-quarter deliveries, totaling 614 units. However, this figure fell short of expectations because of supply chain disruptions, including raw material shortages.

This year alone, GE Aerospace will allocate $250 million to facility enhancements, including the completion of the new Services Technology Acceleration Center (STAC) near Cincinnati, Ohio. The STAC, which is set to open in September, will focus on developing innovative engine service technologies and processes, which will be rolled out across the company’s MRO locations.

Moreover, the STAC will introduce a new technique for detecting microstructural variations in metal engine components. This technology is expected to improve decision-making on whether to repair or replace engine parts, potentially reducing the need for new components and lessening aircraft downtime, thereby easing supply chain constraints.

In response to ongoing challenges in the aerospace supply chain, which has yet to fully recover from the impact of the Covid-19 pandemic, GE Aerospace announced in March a $100 million investment as part of a larger $650 million effort aimed at boosting the production capabilities of its domestic suppliers.

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