The founders, Jörg Bauer, CEO of the Tungsram Group; István Herdon, owner of the Xanga Group; and Attila Kürthy, CEO of the newly created company, signed the agreement on Wednesday to the start of operations of Tungsram Aero Space Power Kft.
According to MTI, the turnover of the newly founded company is expected to reach HUF 2.7 billion in the first year, and HUF 8–10 billion within the next three years.
The new company is a fast-growing division of the Tungsram Group, which specializes in MRO (maintenance, repair, overhaul) services for the aviation and energy sectors. Aerospace MRO currently represents USD 100 billion in turnover in the global market, with industry players unanimously expecting further continued growth potential. This is coupled with two other areas, maintenance and parts manufacturing related to the energy and renewable energy industries. Current partners of Tungsram’s Kisvárda plant are GE Aviation, GE Power and GE Renewable.
Kürthy said that Tungsram offers world-class manufacturing solutions and engine repair services to major turbine manufacturers and MRO providers, adding that the company sees significant growth potential in the industrial gas turbine market, where it also wants to establish a foothold.
Tungsram Aero Space Power is currently the only aero-engine component manufacturing plant in the sub-region that is certified by both the European and US aviation authorities (EASA and FFA). The Kisvárda plant is one of the centers of excellence in welding in the region of Eastern Hungary. Tungsram Aero Space Power also plans to obtain certification from the Chinese aviation authority CAAC in the near future.
Most of the employees have been transferred from Tungsram Operations Ltd.’s factory in Kisvárda, and the change has been well received. Aero Space Power also offers other job opportunities in the region and is currently looking for welders, electricians, locksmiths and inspectors.
Jörg Bauer, CEO of Tungsram, said that the need for a separate specialized company within the group was due to the greater freedom it brings to develop a corporate strategy and arrange financing. In order to grow further, it was necessary to attract external professional and financial investors, including founding partner Wex Tasp Share Ltd, part of the Xanga Group. The Xanga Group’s developments in the aerospace environment over the past 10 years are slowly reaching the USD 100 million mark.