Lufthansa Technik Acquires Tulsa-based Heat Exchanger MRO Provider

Lufthansa Technik has invested in a U.S.-based component MRO company as part of efforts to expand its footprint in the Americas region and strengthen its supply chain security.

Through its U.S. holding company, Lufthansa Technik North America Holding Corp., Lufthansa Technik (LHT) has acquired 80% ownership of ETP Thermal Dynamics from Campbell Holdings Group.

Based in Tulsa, Oklahoma, ETP Thermal Dynamics specializes in MRO services for heat exchangers, as well as oil coolers, fuel heaters, and electromechanical and hydraulic components. The company was established in 2016, and its customer base includes LHT and Lufthansa, as well as a variety of airlines, MROs, OEMs and suppliers—such as AAR, AerFin, Aerolineas Argentinas, American Airlines, Boeing, Delta Air Lines, EgyptAir, FL Technics, GE Aerospace, Honeywell, KLM, Korean Air and SpiceJet.

ETP holds approvals from the FAA and European Union Aviation Safety Agency (EASA) and offers more than 200 FAA-approved designated engineering representative repairs. Its more than 30,000 ft.² Tulsa facility employs around 30-40 staff.

Lufthansa Technik Component Services (LTCS) is also based in Tulsa, and LHT says the proximity “further facilitates post-acquisition activities and integration.” LTCS more than doubled space at its Tulsa facility in 2017 to 115,000 ft.² as part of a major expansion. The company is certified by the FAA, EASA and the Civil Aviation Administration of China.

Kenny Walling, director of production and engineering at LTCS, will also take on the role of CEO at ETP Thermal Dynamics. Former CEO Rick Campbell will continue with the company as CTO. “This acquisition ensures continuity and growth for ETP by leveraging Lufthansa Technik’s expertise and market reach to enhance our capabilities and services in the aircraft component market,” said Campbell in a statement.

In March, LHT CEO Soeren Stark said the company’s technical support business for components would be a “disproportionately high growth driver,” generating expected earnings of more than €1 billion ($1.11 billion). In Lufthansa Group’s July 31 earnings statement, it said LHT’s second-quarter revenue increased by 18% from the prior-year period, driven largely by its aircraft component and engine services business segment.

However, in LHT’s July 31 earnings statement, CFO William Willms noted that this business has been “negatively impacted by the disproportionately high cost increases and ongoing difficulties in the supply of materials across the industry.” The ETP acquisition will presumably give LHT increased local component resources in the Americas.

LHT also established an aircraft heat transfer components partnership in China between Lufthansa Technik Shenzhen in 2021. TAT’s Tulsa-based subsidiary, TAT Limco, works on heat exchangers and other components such as oil coolers, condensers, fuel heaters and environmental control systems. Last month, TAT Technologies COO Jason Lewandowski told Aviation Week Network that longer and less reliable supplier lead times forced the company to increase inventories and forecasting efforts.