ATLANTA—ITP Aero is targeting aftermarket activity to account for 20-25% of its total revenues over the next five years.
The Bilbao-headquartered company has made no secret of its wish to grow its footprint in the commercial MRO segment and to engage with OEMs on a greater volume of maintenance for commercial engine programs. Currently, the business’s split by segment is around 70% civil aviation, 15% defense and 15% MRO.
To reach the target, Alan Jones, ITP Aero's executive director of MRO, says the company will have to grow five-fold and will do this by targeting investments across the business, including in new technologies, expanding its global footprint and doubling its headcount.
It will continue to maintain its defense programs, of which the company is the Spanish representative on all major European engine consortiums. Jones notes a “good, steady, incremental growth” in the defense segment but says it will continue to grow in the commercial aftermarket as that is where ITP sees the potential for the biggest returns.
“We've got a very demonstrated capability on the OEM side and we're leveraging a lot of those manufacturing things into the component repair business of MRO,” Jones says. The company recently opened an advanced manufacturing and repair lab in Bilbao, which Jones says will enable ITP Aero to develop more repair industrialization. “There's about 100 engineers in place already to help us think about what those new repairs look like, and how to industrialize those."
Jones adds that ITP is looking to work with OEMs and Tier 1 suppliers to see how its capabilities can be leveraged. He says the company will look to gain more exposure to new-generation engine types such as the CFM International Leap and Pratt & Whitney geared turbofan.
Last year, ITP Aero completed the acquisition of Irving, Texas-based engine repair shop BP Aero, which provides engine maintenance, teardowns and component overhaul services on several commercial engine types.
Last year, BP Aero grew its portfolio by adding General Electric CF34 engine overhaul capability and Jones says ITP will make further investments in its hospital shop and quick-turn services this year.
“We're going to double down on component repairs within the BP Aero business as well,” he says. “We have two facilities within the BP Aero network, and we're looking to potentially add additional footprint through a possible third facility in the U.S. and duplicating equipment to handle increased work volumes.” ITP Aero also plans to invest further in its component repair facility in Madrid.
Formerly owned by Rolls-Royce, ITP Aero became an independent design, manufacturing and services specialist after the engine manufacturer sold it for €1.6 billion ($1.8 billion) to a group of investors led by Bain Capital.
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