Foundation Stone Laying Ceremony for XEOS Center
This investment is valued at 1 billion PLN
The 27th of September 2017 will go down in the history of XEOS as a symbolic day of launching the investment and laying the foundation stone for XEOS aircraft engine service and overhaul centre in Sroda Slaska.
On that day, XEOS guests of honour include: Carsten Spohr - Chief Executive Officer at Lufthansa AG, Dr. Johannes Bussmann – CEO at Lufthansa Technik AG, David Joyce – Vice Chair of GE and the President and Chief Executive Officer for GE Aviation, Jean Lydon-Rodgers – President and Chief Executive Officer of GE Aviation Services, as well as Tadeusz Koscinski – Undersecretary of State in the Ministry of Development and Rolf Nikel – Ambassador of Germany in Poland.
The symbolic time capsule contains among others the original plate to the etching representing an aircraft engine against the backdrop of XEOS centre, authored by a Wroclavian artist Marta Lech, a letter from XEOS team to future generations of employees and business partners of the centre, an outline of a GEnx-2B engine (to be serviced in the plant in the future) cut in glass, as well as a model of Boeing 747-8, where such engines are installed.
XEOS, a joint venture between Lufthansa Technik and GE Aviation is an investment valued at one billion Polish zlotys. This state-of-the-art aircraft engine service centre, one of the most advanced in the world, will employ 600 experienced top-class aviation industry specialist and invest 60.00 million PLN in staff training.
The plant is planned to be opened in the spring 2019.
Thomas Böttger, XEOS Managing Director of Business: Today's celebration marks a symbolic launch of our project. At the Paris Airshow in June 2015, two global aviation industry leaders - Lufthansa Technik and GE Aviation - decided to create a world-leading aircraft engine service and overhaul center for GEnx-2B and GE9X engines. Today we fulfill this dream and we take pride in this challenge. XEOS means modern technologies, world-class solutions as well as highest standards of quality and safety. We create the history of the aerospace industry and knowledge-based modern economy, whose main pillar is aviation. We write this story together with our team, which will ultimately include 600 high-end professionals equipped with truly unique skills.
Stefan Schmuck, XEOS Managing Director of Operations: With great joy, accompanied by our friends, business partners, Polish authorities, neighbours and media, today we are starting a long, at least 40-year long journey. Since December 2016, Poland and Lower Silesia, and especially Sroda Slaska, have been our home. Here, we want to build strong relationships with the local community, whilst the foundation stone laid today is not only the foundation of our center, but also the foundation of these relationships. Into the time capsule we have put a letter for future generations, which contains a manifesto of our values and plans. We trust that people who will read this letter in 40 or maybe more years will be proud to say that our message is still up to date and that our goals have been met.
Tadeusz Koscinski, Undersecretary of State in the Ministry of Development: The XEOS investment in Sroda Slaska is an outcome of the government's consistent efforts to reduce economic disparities between regions. Choosing Poland to situate the latest aircraft engine service and overhaul centre is no coincidence. The well-developed infrastructure has definitely been very important, but even more are the skilled people and a stable economic situation. We are gradually becoming a European leader in acquiring greenfield investments in the area of state-of-the-art technologies.
Intensive works at the construction site
Work on the construction site began in early August 2017. The area has already been levelled whilst over 35,000 m3 of earth have been moved around the construction site. A large part of the foundations have been poured, too. In mid-October the first construction cranes are to join excavators on site to start constructing the skeleton of the building. Over 200 concrete columns constituting the skeleton of the plant, weighting up to 35 tons each will be erected. In total, approx 1,700 tonnes of steel and a total of 20,000 m3 of concrete will be consumed during construction works.
The construction site for XEOS centre has the area of about 14 ha, that is approximately 20 football fields. In addition, the pipework and rainwater retention tank have the capacity of an Olympic-size swimming pool. The rough framing work for the Main Building will be completed by March 2018. As soon as in Summer 2018 the first pieces of repair equipment will be brought in. According to the plan, the buildings will be handed over to the investor in December 2018, so that in spring 2019 the Centre could receive its first engines. The timely completion of the works is possible thanks to the involvement of several dozen subcontractors - Polish companies collaborating with the general contractor and up to 500 workers who had new jobs created owing to the project. Construction works are conducted in a two-shift system, from Monday to Saturday.For the last 56 days since the construction work has been launched there has been no incident whatsoever occuring on the site. This is owing to top quality standards which are an inherent value for the joint venture companies – Lufthansa Technik and GE Aviation, the General Contractor, Budimex Company, and for PM Group company acting as the General Designer for the centre.
Latest-generation aircraft engines will be serviced in the XEOS Centre
The plant is intended primarily to service GEnx-2B engines, and in subsequent years also GE9X. Currently, 18 air operators worldwide have nearly 500 GEnx-2B engines in commercial use. The engines have totalled 5 million flight hours and obtained excellent operational results. Their technological sophistication has resulted in a lower fuel consumption and CO2 emissions down by 15% compared to the GECF6 model.
GE9X engines, to be serviced in the plant from 2021, are the most advanced aircraft engines in their class. Although the formal certification process for these engines has yet to close in 2018, over 700 units have already been ordered by operators worldwide. GE9X engines continue to develop aircraft technology to higher efficiency in tandem with lower fuel consumption, meaning lower gas emission.
86 people already employed in XEOS, ultimately 600 new jobs
The opportunity to work with the foremost technologies in the aviation industry, together with extensive training and the international working environment created by two global brands – Lufthansa Technik and General Electric Aviation – has already and will be attractive to top-class specialists, engineers and students of technical faculties all over Poland. As for today, the Centre already employs 86 people, whilst this number is to increase to 100 by the end of this year. In spring 2019 when the plant is to be fully operational, there will be about 140 people working there. Ultimately, XEOS aims to create 600 new work places.
XEOS is investing 60.00 million PLN in staff training, and these funds will have been allocated to operate the Specialised Training Centre in Wrocław and multi-month trainings for employees.
Lufthansa Technik and GE have chosen Poland as the location for their new investment
XEOS will build a state-of-the-art aircraft engine service centre
• XEOS, a joint venture of GE Aviation and Lufthansa Technik, will build a state-of-the-art aircraft engine service centre.
• Valued at apx. €250 mln. the investment will boost the economic development of the region and create about 500 jobs.
• The location of the new investment was announced on Monday, 5th December 2016, during the joint press conference by Bill Millhaem, Senior Executive at GE Aviation and Bernhard Krueger-Sprengel, Head of Engine Services at Lufthansa Technik, in the presence of Mateusz Morawiecki, Deputy Prime Minister and Minister of Development and Finance.
• The investment will be based in the Legnica Special Economic Zone in Środa Śląska.
Bernhard Krueger-Sprengel, Senior Vice President Engine Services at Lufthansa Technik:
For decades, Lufthansa Technik has been known for top quality in the maintenance, repair, and overhaul business of engines, as well as aircraft structures and components. The establishment of the XEOS engine shop with our partner GE is a major milestone in LHT's growth strategy. The facility announced today will create hundreds of technical and high-level jobs for in Poland in a further evolving aviation industry. A sustainable approach has always been part of our company strategy and, therefore, we will of course take care that international environmental and social compliance standards will also be implemented at the new facility.
Bill Millhaem, Senior Executive at GE Aviation: We, together with our partner, and the support of the Polish government and local authorities, are delighted to announce our latest investment in Poland. The facility is designed to be a world-class aircraft engine service centre focused on the maintenance, repair and overhaul of GE's technologically advanced next-generation engines. We look forward to the investment and contributing to the economic development in the region and the entire country.
Mateusz Morawiecki, Deputy Prime Minister, Minister of Development and Finance: Selection of Środa Śląska as the location for the joint investment of GE and Lufthansa Technik proves once again that our country is open and ready for new, technologically advanced projects. This investment will significantly strengthen the sector which thanks to our world- class specialists in aviation engineering has already become our Polish specialty.
Selection of Poland complimented by highly-skilled specialists and a well-developed infrastructure
The memorandum of understanding regarding the construction of a new, state-of-the-art engine overhaul facility for GE engines operated by Lufthansa and other airline and cargo carriers was signed during
the Paris Air Show in June 2015 by the representatives of both companies: GE Aviation President and Chief Executive Officer David Joyce and Lufthansa Technik AG CEO Dr. Johannes Bussmann. The next step was to find the best location for this technologically advanced project. Various locations in many countries across a few continents were rigorously analyzed in a lengthy and intensive selection process. In the end, the Legnica Special Economic Zone (LSEZ) was selected thanks to its development potential, economic competitiveness and government support. Moreover, the availability of a highly-skilled workforce was a key factor in that decision. Polish specialists thrive on professional challenges, are open to new technologies, flexible in the dynamic labour market and ready to build up their skills.
Having developed a business-friendly environment for new investments over last several years, Poland has built its competitive edge and proved to be the best location for this project specifically compared to an alternative location outside the EU. The LSEZ was in particular put forward as the most suitable region by virtue of both its highly-skilled and versatile workforce and its infrastructure. That includes a favorable location and well-developed road network that result in the investment becoming operational faster. Thus, it will bring tangible benefits to the stakeholders sooner. Poland also has a connection to the project due to the fact that the core of the engines to be serviced in the factory was designed by Polish engineers at the Engineering Design Center (EDC) in Warsaw.
Thanks to an effective cooperation between business, the government and the local authorities,
the construction of a modern service centre in the Legnica Special Economic Zone has been announced today. Upon finalizing certain agreements between Lufthansa Technik and GE, which the parties expect
to complete during the first quarter of 2017, the cornerstone in expected to be laid in March 2017, with the factory becoming operational in September 2018. The project will bring long-term development perspectives. An intensive cooperation is planned with the Wrocław Institute of Technology and the local technical schools to educate a new generation of brilliant specialists.
Servicing the latest aircraft engines
The centre will mainly service GEnx-2B engines and will be capable of servicing the new GE9X model, which is currently in development, by 2021. Close to 500 GEnx-2B engines are in service with 18 operators around the world and the fleet has accumulated 5 million flight hours with outstanding performance. Compared to GE'sCF6 engine, the GEnx engine offers up to 15 percent better fuel consumption, which translates to 15 percent less CO2.
GE9X engines, expected to enter service in 2020, are the most technologically advanced aircraft engines
in their class. Although the engine certification is scheduled for 2018, almost 700 GE9X engines have been ordered by customers around the world. GE9X engines are the next step on the way to improved efficiency, lower fuel consumption and lower greenhouse gas emissions.
The complex will be built in two phases. The first two years will mainly see the construction of office, service and operational buildings. The framework will emerge relatively quickly, followed by more time-consuming internal and finishing works. Over 200 people, ranging from engineers to clerical staff and labourers, will be employed at the start of the operation.
Depending on the future business development a further expansion is planned including the possible construction of a cutting-edge test chamber for aircraft engines. After the realization of this expansion stage XEOS will offer up to 500 jobs.
An opportunity for local communities
The development of such a large and technologically advanced investment will bring a range of opportunities to the local communities in the LSEZ. Not only will the project bring jobs for around 500 people, but it will also act as a catalyst to associated businesses. The capital invested in the service centre will find its way to both household and community budgets and from there to new cultural and other public facilities, recreational grounds and the local infrastructure.
Environmental protection issues are of the top priority across Europe, and the new investment in LSEZ has been planned and developed in compliance with this approach. The investors have gone to great lengths to ensure the designed solutions meet all environmental standards. The technologies used are a prime example of 21st century infrastructure: quiet, low emissions, environmentally friendly and safe for the local communities. Today, business means more than return on investment. It's also the concern about the welfare and health of the future generations.