The German aviation leader Lufthansa Technik is planning to build a maintenance facility in Portugal. The new venture would address the rise in demand for aircraft maintenance and repairs, which has seen an uptick since the pandemic.
Portugal has an established education system for workers in the aviation industry which is already used by international companies like Brazilian aircraft manufacturer Embraer.
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Embraer has a maintenance center for Pratt and Whitney (P&W) engines in the country which, once completed, is expected to generate €600m ($663m) in revenue. The developments could be setting Portugal up to become a hub for the aircraft maintenance sector.
Portugal also offers a strategic location in southwestern Europe.
The decision about the new facility comes as the German company considers buying a 19.9% stake in the Portuguese airline TAP.
FDI in Portugal
Portugal has been an attractive destinations for foreign investors for a while. It has drawn the attention of tech firms, multinationals, and automotive companies such as Mercedes Benz and US pharmaceutical company Amgen.
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By GlobalDataDuring the first six months of 2024, Portugal attracted €4.1bln ($4.53bln) of FDI. This means that 67% of Portugal’s GDP comes from foreign investment, as announced by the Bank of Portugal last week.
The figure for the first half of 2024 is far bigger than for the same period in 2023 when FDI inflows totalled €2.2bln ($2.44bln).
