By Max Bernhard 
 

Safran S.A. (SAF.FR) and MTU Aero Engines AG (MTX.XE) said Tuesday that they have settled details concerning their partnership to develop an engine for the next generation of European fighter aircraft.

The two companies said they agreed to form a fifty-fifty joint venture, to be incorporated by the end of 2021, to manage the development, production and after-sales support of the new engine.

According to a letter of intent signed in February, Safran will take the lead in engine design and integration, while MTU Aero will take the lead in engine services.

"In the framework of the contractual scheme defined by France and Germany, Safran Aircraft Engines will be the prime contractor and MTU Aero Engines the main partner for the first phase of research and technology," they said.

 

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

 

(END) Dow Jones Newswires

December 03, 2019 05:54 ET (10:54 GMT)

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