Dax-listed MTU Aero Engines is entering the drone engines market by acquiring Cologne-based startup Aerodesignworks. The company, spun out from DLR in 2011, develops small turbojet engines for the defense sector. CEO Johannes Bussmann outlined the strategic plans to Handelsblatt.
MTU Aero Engines announced the acquisition of Cologne-based startup Aerodesignworks on Wednesday afternoon. The Dax-listed engine specialist is thereby expanding into the market for drives of unmanned aerial vehicles in the defense sector.
Aerodesignworks was spun out from the German Aerospace Center (DLR) in 2011. The company has developed small turbojet engines and is supplying initial customers in the defense sector. It is traded in industry circles as a potential supplier for the Taurus Neo, the Bundeswehr's new cruise missile.
"MTU has a lot of experience with large engines. At the same time, there is great dynamism in unmanned aerial vehicles. But the requirements there are quite different, for example in terms of range and unit numbers," said Johannes Bussmann, CEO of MTU Aero Engines, to Handelsblatt. "We have decided to close this gap in these engines."
Bussmann intends to use Aerodesignworks as the core for a new business division. "We are creating a nucleus with Aerodesignworks," the manager explained. Production will remain in Cologne, supported by MTU's production capabilities. Market research institutes estimate that the European drone market will grow from 7.3 to eleven billion US dollars between 2024 and 2029.
