Government, Lufthansa Technik Malta sign €55m investment agreement

The Government and Lufthansa Technik Malta last week signed the formal agreement for a €55 million investment to set up new maintenance, repair and overhaul facilities for wide-body aircraft. This expansion project is estimated to create 550 jobs over four to five years and new training and development opportunities in aircraft maintenance.

Founded in 2002, Lufthansa Technik Malta is a centre of excellence for C-Checks and modifications on the Boeing and Airbus narrow-body aircraft. Since it was set up, it has carried out over 230 C-Checks. The new facilities will now also cater for D-Checks, more commonly referred to as overhauls on wide-body aircraft, like for Airbus A330/A340 and the A380.

Works on the new hangar facility, over an area of 27,000 square metres with a 270-metre span, 90 metres depth and 34 metres height, including several back shops and which can accommodate two wide-body aircraft and two narrow-body aircraft simultaneously, are scheduled to start soon and be completed by October 2008.

Investment, Industry and Information Technology Minister Austin Gatt said that the "investment being made by Lufthansa comes in a long line of investments that this government has attracted to Malta in 2006 - the year when we have broken all records for foreign direct investment. This has not happened by chance but is the result of a concrete strategy and game plan developed by this Ministry and brilliantly run by Malta Enterprise."

He said "what we are witnessing today is a clear endorsement of our economic, industrial and educational policies. This is not the opening of something new: it is a Landmark a continuation of an established and successful relationship between Lufthansa and Malta that once again brands Malta as a top country for worldwide investors."

"The signing of this formal agreement is the opening of a new chapter in Lufthansa Technik Malta," said Dr Andreas Heizner, senior vice president, aircraft base maintenance and a Lufthansa Technik Malta board director. "It is the start of the realisation of a vision that has been built on solid foundations while aspiring to achieve greater heights. In this regard, Malta has already established itself as a reliable maintenance, repair and overhaul centre through the performance it is delivering."

Louis Giordimaina, CEO of Lufthansa Technik Malta said: "Through this investment, Lufthansa Technik is not only contributing significantly towards Malta's economic growth but it is also placing long-term commitment in the Maltese workforce. This has come about as a result of the performance of the current workforce who have risen to the various challenges the ongoing satisfaction of our customers and the achievement of corporate targets set by our shareholders. Yet there is no room for complacency. This is a tough competitive market with continually rising demands for efficiency, quality and value for money".

Lufthansa Technik Malta currently employs 160 full-time employees and has over 50 apprentices following courses at the Malta College of Arts, Science and Technology. Through MCAST, Government has also undertaken to set up courses for the aircraft maintenance industry. Earlier this year, over 50 students started courses leading to Licence A certification examinations. Other training programmes are planned to be introduced in September.

The agreement was signed by Dr Heizner and Mr Giordimaina, on behalf of Lufthansa Technik Malta, and Dr Alec Mizzi, for Government. The signing was presided over by Minister Gatt.