LUFTHANSA Technik Philippines (LTP) is planning to invest $40 million to expand its facility in Villamor Airbase in Pasay City, according to the Department of Trade and Industry (DTI).
In a statement on Friday, Trade Secretary Ramon Lopez said the department supports the expansion plans of the aircraft maintenance, repair and overhaul (MRO) company, saying this will help boost the Philippines’ efforts to become an aerospace and MRO hub in the region.
LTP is planning a 9,000-square meter (sq.m.) expansion in Villamor Airbase, where it currently operates on a 229,000-sq.m. lot and employs 3,200 people. The expansion project will create 300 more jobs. It is expected to be completed 13 months after the contract is awarded.
“The Philippines is positioning itself as the hub for aerospace manufacturing and aftermarket services in the Asia Pacific Region. We have the young, educated, and highly-trainable workforce that is a boon to investors. If we achieve this goal, we can increase our high-value exports and provide decent jobs to more Filipinos,” said Mr. Lopez, who met with LTP officials on July 9.
Elmar Lutter, president and chief executive officer of LTP, said the global MRO market is projected to grow by 4% to 5% annually, with one third coming from Asia Pacific. However, he warned the rising demand for MRO skilled workers may cause a labor shortage in the Philippines, as Filipinos are known as skilled aircraft mechanics.
LTP is a joint venture between MacroAsia Corp. and Germany-based Lufthansa Technik AG, and offers a wide range of MRO services. Aside from its site in Pasay, it also has operations in Cebu, Davao, Pampanga, Palawan, and Aklan. — Vincent Mariel P. Galang
