MRO & Manufacturing
PPG’s $380M Aerospace Facility in North Carolina to Create 110 Jobs
PPG announces a $380 million aerospace coatings facility in Shelby, NC, creating 110+ jobs and advancing sustainable aviation solutions by 2027.
PPG’s $380 Million Aerospace Investment: A Strategic Move in North Carolina
In a bold strategic move, PPG Industries has announced a $380 million investment to construct a new aerospace coatings and sealants manufacturing facility in Shelby, North Carolina. This development marks one of the most significant capital investments by the company in recent years and signals a strong commitment to both innovation and regional economic growth. The aerospace sector, already undergoing rapid transformation due to sustainability mandates and technological advancements, stands to benefit significantly from this expansion.
The facility, expected to span 198,000 square feet, will not only enhance PPG’s production capacity but also create over 110 high-paying jobs in Cleveland County. With construction set to begin in October 2025 and operations slated for early 2027, the project aligns with broader industry trends such as increased demand for sustainable aviation solutions, digital manufacturing, and supply chain resilience.
PPG’s decision to invest in North Carolina underscores the state’s emergence as a manufacturing hub, particularly in aerospace. Through this initiative, the company aims to meet surging global demand while contributing to the local economy and advancing its sustainability goals.
PPG’s Aerospace Legacy and the Road to Shelby
From Glass to Global Aerospace Leader
Founded in 1883 as the Pittsburgh Plate Glass Company, PPG has evolved into a global leader in paints, coatings, and specialty materials, with revenues reaching $15.8 billion in 2024. Its aerospace division, established through key acquisitions like Courtaulds Aerospace in 2000, has become a market leader in coatings, sealants, and transparent armor technologies.
PPG’s aerospace innovations include the Desothane® HD basecoat/clearcoat system and chrome-free primers, which have set industry benchmarks for durability and environmental compliance. These products are widely used in both commercial and military aviation, offering superior protection and aesthetic appeal.
Research and development remain at the core of PPG’s aerospace strategy. The company has invested heavily in technologies like UV-blocking window coatings and hexavalent chromium-free pre-treatments, ensuring compliance with evolving environmental regulations while maintaining product performance.
“By modernizing and digitizing our facilities, PPG will continue to embody our purpose – to protect and beautify the world, while contributing to the growth and innovation of the aerospace sector.”
Tim Knavish, PPG Chairman and CEO
Project Scope and Economic Footprint
The Shelby facility represents a major expansion of PPG’s manufacturing footprint. Located on a 62-acre site, the 198,000-square-foot complex will house both manufacturing and warehousing units. The facility is expected to generate over 110 jobs with an average annual salary of $66,861, significantly higher than the Cleveland County average of $48,310.
Construction is scheduled to begin in October 2025, with the plant becoming operational in the first half of 2027. The North Carolina One Fund has pledged a $300,000 performance-based grant, contingent upon PPG creating at least 62 jobs and investing $221.8 million locally. This incentive package reflects the state’s strong support for industrial development.
Governor Josh Stein praised the investment, citing North Carolina’s skilled workforce and infrastructure as key factors in attracting PPG. “North Carolina is the #1 state for manufacturing in the Southeast,” he noted, emphasizing the region’s readiness to support high-tech industries.
Industry Trends Shaping the Investment
Growth in Aerospace Coatings Market
The aerospace coatings market is experiencing robust growth, valued at $1.77 billion in 2025 and projected to reach $3.15 billion by 2035. This growth is fueled by fleet modernization, increased military spending, and a global push toward sustainability. Airlines and defense agencies are demanding coatings that offer both performance and environmental compliance.
PPG is well-positioned to capitalize on this trend with products like Aerocron™, an electrocoat primer that reduces volatile organic compounds (VOCs) and enhances corrosion resistance. Nanotechnology is also playing a role, with nanoparticles improving aerodynamic efficiency and reducing fuel consumption.
The post-pandemic recovery in air travel has accelerated maintenance, repair, and overhaul (MRO) activities. Aging fleets require advanced coatings to extend aircraft life cycles, creating additional demand that PPG’s new facility is designed to meet.
“This investment not only underscores our commitment to the aerospace industry and providing high-quality products, but also positions us to respond more effectively to growing market needs.”
Sam Millikin, PPG Vice President of Global Aerospace
Strategic and Competitive Positioning
PPG’s investment in Shelby is not just about capacity—it’s about staying ahead of the curve. The facility will incorporate digital manufacturing technologies that reduce costs, improve agility, and support real-time data analytics. This aligns with PPG’s broader strategy to modernize operations and maintain its competitive edge in a $15.8 billion enterprise.
With competitors like Sherwin-Williams and AkzoNobel also expanding in aerospace, PPG’s proactive approach enhances its ability to capture market share. Analysts have projected a 17.25% upside for PPG’s stock, attributing this to the strategic value of the Shelby facility amid increased aircraft production by Boeing and Airbus.
Moreover, the facility’s location offers logistical advantages, including proximity to major transport routes and aerospace clients. This enhances supply chain resilience and allows for quicker turnaround times, an increasingly critical factor in the aerospace market.
Regional and Global Implications
North Carolina’s Industrial Revival
PPG’s return to Cleveland County—where it last operated in the 1950s—signals a broader industrial revival in the region. North Carolina has emerged as a manufacturing powerhouse, attracting firms like GE Aerospace and Honeywell. The state’s community college system plans to collaborate with PPG to develop specialized training programs, ensuring a steady pipeline of skilled labor.
These developments are part of a larger strategy to position North Carolina as a hub for advanced manufacturing and aerospace innovation. The Shelby facility will serve as a catalyst for local economic growth, potentially attracting additional suppliers and service providers to the area.
State and local officials have emphasized the long-term benefits of the investment, including job creation, infrastructure development, and enhanced regional competitiveness. The partnership between PPG and North Carolina exemplifies how public-private collaboration can drive industrial transformation.
Sustainability and Innovation at the Core
PPG’s Shelby facility will feature energy-efficient systems and waste reduction measures, aligning with the company’s net-zero emissions goals. These efforts reflect broader industry shifts, with 65% of aerospace firms now prioritizing sustainable coatings to meet International Air Transport Association (IATA) targets.
Environmental compliance is no longer optional—it’s a competitive necessity. PPG’s focus on chrome-free and low-VOC coatings positions it as a leader in sustainable aerospace solutions. The Shelby plant will serve as a model for eco-friendly manufacturing in the sector.
Incorporating digital technologies will also allow PPG to monitor and minimize its environmental footprint in real time. This approach not only meets regulatory requirements but also appeals to customers increasingly conscious of sustainability metrics.
Conclusion: A Strategic Leap into the Future
PPG’s $380 million investment in Shelby, North Carolina, is more than an expansion—it’s a strategic response to evolving market dynamics. By aligning its operations with trends in sustainability, digitalization, and aerospace growth, PPG is securing its position as a future-ready leader in the industry.
As the aerospace sector continues to evolve, investments like these will play a crucial role in shaping its trajectory. For North Carolina, the project represents a significant economic opportunity. For PPG, it’s a calculated move to meet global demand while advancing innovation and environmental stewardship.
FAQ
What is the purpose of PPG’s new facility in Shelby?
The facility will produce aerospace coatings and sealants to meet rising global demand and support sustainability initiatives.
How many jobs will the facility create?
Over 110 high-wage jobs are expected, with an average salary of $66,861.
When will the facility be operational?
Construction begins in October 2025, with operations expected in early 2027.
Why was North Carolina chosen?
The state offers a skilled workforce, strong infrastructure, and competitive incentives, making it ideal for advanced manufacturing.
How does this investment align with sustainability goals?
The facility will incorporate energy-efficient technologies and produce eco-friendly coatings, supporting PPG’s net-zero targets.
Sources: Hardware Retailing, PPG Press Release, GuruFocus, WCCB Charlotte, Charlotte Stories, Fact.MR, TBRC Blog, Nasdaq, Wikipedia, Data Bridge,
Photo Credit: EuropeanCoatings
MRO & Manufacturing
ITOCHU Acquires Stake in IAG Engine Tech MRO Venture
ITOCHU Corporation takes a minority stake in Madrid-based IAG Engine Tech, one of eight CFM LEAP Premier MRO licensees worldwide.
Japanese conglomerate ITOCHU Corporation has agreed to acquire a minority stake in IAG Engine Tech, a newly established engine maintenance, repair, and overhaul (MRO) company based in Madrid, Spain.
Announced in a joint press release on October 28, 2026, the transaction marks ITOCHU’s first direct entry into the narrow-body aircraft engine maintenance market. The agreement provides IAG Engine Tech with capital and international reach to expand its third-party customer base as it prepares to service next-generation powerplants, while International Airlines Group (IAG) will retain a majority stake through its Spanish carrier, Iberia.
Transitioning operations at La Muñoza
IAG Engine Tech was established in 2026 to consolidate and expand the engine maintenance capabilities of IAG airlines, which include Iberia, British Airways, Aer Lingus, Vueling, and LEVEL. The new entity will operate out of the existing La Muñoza facility in Madrid, assuming the engine work previously handled directly by Iberia Maintenance.
Iberia Maintenance brings over 50 years of engine servicing expertise to the new joint venture. The facility currently holds capabilities for legacy narrow-body powerplants, including the International Aero Engines V2500 and the CFM International CFM56, as well as the new-generation Pratt & Whitney PW1100G-JM geared turbofan (GTF).
Marco Sansavini, President and CEO of Iberia, outlined the strategic rationale behind bringing in an external partner to scale the operation.
“This project is part of the transformation of our maintenance business and the long-term commitment outlined in the Flight Plan 2030. The addition of ITOCHU allows us to bring on board a partner with experience, investment capacity, and a strong international presence. Their support will be crucial in developing the potential of IAG Engine Tech and strengthening our activity in a market with significant growth prospects.”
Securing capacity in the CFM LEAP market
A central driver of the new partnership is the upcoming introduction of CFM International LEAP engine maintenance capabilities. In April 2026, IAG secured the CFM LEAP Premier MRO license, positioning IAG Engine Tech to service the powerplant that drives the Airbus A320neo and Boeing 737 MAX families.
According to reporting by Aviation Week, only eight MRO providers worldwide are currently authorized to maintain CFM LEAP engines under the Premier license. This exclusivity places IAG Engine Tech in a strong position to capture third-party work outside the IAG fleet.
The market for narrow-body engine maintenance is expanding rapidly as operators worldwide accelerate the introduction of short- and medium-haul aircraft. TRAICY Global reports that LEAP engines are projected to account for approximately 70 percent of the single-aisle aircraft market by 2035, ensuring long-term demand for certified maintenance facilities.
Operations at IAG Engine Tech, including the expanded LEAP capabilities, are scheduled to officially begin in early 2027. This timeline coincides with the expected finalization of the ITOCHU equity acquisition, which remains subject to standard regulatory approvals and consents.
ITOCHU builds an integrated aviation aftermarket portfolio
The minority stake in IAG Engine Tech represents a strategic expansion for ITOCHU Corporation, a Tokyo-headquartered conglomerate with approximately 90 offices across 60 countries. While this is the company’s first venture into narrow-body engine MRO, ITOCHU already maintains an established commercial relationship with Iberia and IAG through its aircraft leasing operations.
The investment follows a series of targeted acquisitions designed to build a comprehensive aviation aftermarket and leasing portfolio. In August 2026, ITOCHU acquired a 50 percent equity interest in TC Skyward Aviation U.S., a joint venture managed with Tokyo Century, significantly expanding its footprint in the North American aircraft leasing sector.
Prior to the leasing expansion, ITOCHU invested in Ireland-based Killick Aerospace in 2024. That transaction allowed the Japanese trading house to scale its presence in the used aircraft parts market and original equipment manufacturer (OEM) distribution businesses. By adding direct MRO capabilities through IAG Engine Tech, ITOCHU is creating a vertically integrated aviation services network that spans leasing, parts distribution, and heavy engine maintenance.
AirPro News analysis
We view this transaction as a highly pragmatic move for both parties in a constrained supply chain environment. The global narrow-body engine MRO market is currently facing severe capacity shortages, driven by extended time-on-wing issues with new-generation engines and a lack of available maintenance slots. By partnering with a well-capitalized trading house like ITOCHU, IAG is positioning its in-house maintenance arm to compete aggressively for high-margin third-party work, rather than operating solely as a cost center for its own airline brands.
For ITOCHU, securing a foothold in a licensed LEAP MRO provider offers a lucrative revenue stream that directly complements its existing aircraft leasing and parts distribution portfolios. Access to one of only eight CFM LEAP Premier MRO licenses worldwide gives the Japanese conglomerate a rare and valuable asset in the aerospace aftermarket, allowing it to offer integrated leasing and maintenance packages to airline customers globally.
Photo Credit: Iberia
MRO & Manufacturing
Embraer Names FL Technics Authorized Service Center for E-Jets
Embraer designates FL Technics as an Authorized Service Center for E170 and E190 jets at facilities in Lithuania.
Embraer has designated FL Technics as an Authorized Service Center for its E170 and E190 commercial jets, expanding the manufacturer’s maintenance, repair, and overhaul network in Eastern Europe.
The authorization, announced in a press release on October 29, 2026, covers FL Technics’ facilities in Vilnius and Kaunas, Lithuania. The partnership aims to provide regional E-Jet operators with increased access to certified support solutions as Embraer continues to grow its global services portfolio.
Expanding European maintenance capabilities
The new Embraer Authorized Service Center (EASC) status allows FL Technics to perform approved maintenance on the E170 and E190 variants of the E-Jet family. The authorization formally integrates the Lithuanian provider into Embraer’s global support network, ensuring that maintenance procedures meet the original equipment manufacturer’s specifications.
Frank Stevens, Vice President of Global MRO Centers of Embraer Services & Support, stated that the addition of FL Technics will directly benefit regional operators by increasing the availability of certified maintenance slots in the European market.
“Their proven maintenance capabilities and growing presence across Europe will provide E-Jet operators with greater access to high-quality support solutions. This partnership reinforces our commitment to delivering the best customer experience and ensuring our customers can operate with confidence wherever they fly.”
Saulius Bajarunas, CEO of FL Technics, noted that the authorization serves as a strong validation of the company’s technical capabilities, quality standards, and customer-focused service model. He added that the firm looks forward to supporting Embraer operators with reliable and efficient maintenance, repair, and overhaul (MRO) services from its global network.
Building on existing line maintenance operations
The EASC designation builds on an established operational relationship between the two companies. FL Technics initially launched line maintenance services for Embraer aircraft in 2023. Since that initial launch, the maintenance provider has built a robust operational footprint for Embraer support across the continent.
FL Technics currently delivers line maintenance across several key European stations. These include Vilnius (VNO) and Palanga (PLQ) in Lithuania, Bucharest (OTP) and Cluj-Napoca (CLJ) in Romania, and multiple Norwegian airports including Bergen (BGO), Oslo (OSL), Trondheim (TRD), Bodø (BOO), and Ålesund (AES). The new authorization officially expands its capabilities to include heavier maintenance tasks for the E170 and E190 aircraft at its primary Lithuanian bases.
The company is a leading global provider of aircraft MRO solutions, employing over 4,000 aviation professionals. FL Technics operates MRO hangars in Lithuania, the United Kingdom, Indonesia, and the Dominican Republic. The Embraer authorization follows other recent regulatory approvals for the company’s expanding global footprint. On October 28, 2026, FL Technics Indonesia secured EASA Part-145 certification for its Bali facility, covering Airbus A320 and Boeing 737 maintenance.
Embraer’s aftermarket growth strategy
The expansion of the EASC network in Europe aligns with Embraer’s broader commercial momentum and its strategic focus on aftermarket revenue. Embraer is a leading manufacturer of commercial jets up to 150 seats and the main exporter of high value-added goods in Brazil, maintaining industrial units, offices, service centers, and parts distribution facilities across the Americas, Africa, Asia, and Europe.
On October 27, 2026, Embraer reported a record third-quarter firm order backlog of US$35.7 billion, representing a 14 percent year-over-year increase across all four of its business units.
The manufacturer’s services and support division has been a significant driver of this corporate growth. The services backlog recently reached a record US$5.6 billion. This figure was bolstered by recent contract renewals, including an October 28, 2026, agreement with Alliance Airlines to provide component support for 40 Embraer E190s.
AirPro News analysis
We view Embraer’s decision to authorize FL Technics for E170 and E190 maintenance as a necessary step to support the aging first-generation E-Jet fleet in Europe. As these aircraft transition to secondary operators or require heavier, more complex maintenance checks, the manufacturer must ensure sufficient regional MRO capacity exists to keep the fleet flying efficiently. By leveraging established third-party providers like FL Technics, Embraer can maintain high service levels and capture aftermarket value without the capital expenditure required to build new, wholly owned facilities.
This strategy also frees up Embraer’s internal resources to focus on production and entry-into-service support for the newer E2 family. For FL Technics, securing OEM authorization from Embraer diversifies its service portfolio beyond the Airbus and Boeing narrowbodies that traditionally dominate independent MRO hangars, positioning the company to capture a larger share of the regional aviation aftermarket.
Photo Credit: Embraer
MRO & Manufacturing
MTU Maintenance Signs 10-Year LEAP Engine MRO Deal
MTU Maintenance and Patriot Dynamics finalize a 10-year LEAP-1A and LEAP-1B MRO agreement anchored at MTU’s new Fort Worth facility.
MTU Maintenance and Miami-based aviation lessor Patriot Dynamics have finalized a 10-year maintenance, repair, and overhaul (MRO) agreement for CFM International LEAP-1A and LEAP-1B engines. The contract, announced on October 28, 2026, secures long-term aftermarket support for the lessor’s growing engine portfolio and provides a baseline of work for MTU’s newly opened facility in Fort Worth, Texas.
In a press release issued by MTU Aero Engines, the German manufacturer confirmed the agreement covers both comprehensive MRO services and on-site support. The deal aligns with Patriot Dynamics’ strategy to build a dedicated LEAP engine leasing platform as the global fleet of Airbus A320neo and Boeing 737 MAX aircraft matures.
Expanding operations in Fort Worth
The maintenance work for Patriot Dynamics will be executed at the MTU Maintenance facility located at Perot Field Fort Worth Alliance Airport (AFW). The site officially opened on July 8, 2026, following a $120 million investment by MTU to establish a premier MRO center for LEAP engine services in North America.
MTU reports the production and support space covers approximately 430,000 square feet, though local Texas business filings and industry reports have cited the footprint at up to 462,000 square feet. The facility features dedicated engine testing capabilities, including a 100,000-pound-thrust test cell. Once fully operational, MTU plans to overhaul up to 240 engines annually at the Texas location.
Martin Friis-Petersen, Senior Vice President of MRO Programs at MTU Aero Engines, stated that securing the long-term agreement demonstrates customer confidence and provides a strong foundation for the further development of operations at the Fort Worth site.
Patriot Dynamics builds its LEAP portfolio
Patriot Dynamics specializes in commercial aviation asset trading and leasing, focusing on engines, landing gear, and auxiliary power units (APUs). The 10-year MRO contract directly supports the firm’s recent fleet expansion. On October 29, 2026, the lessor announced an agreement to purchase six spare engines directly from CFM International, split evenly between LEAP-1A and LEAP-1B models.
This direct purchase marks a shift in the lessor’s acquisition strategy and feeds directly into the new maintenance pipeline with MTU. Patriot Dynamics is also exploring further leasing and asset management provisions through MTU Maintenance Lease Services.
Partnering with MTU is an important step as we build our LEAP engine platform. Their technical expertise and comprehensive support capabilities will help us deliver reliable engine solutions for our customers while protecting the long-term value of our assets.
The quote, provided in the MTU press release by Patriot Dynamics Principal Michael Sheldon, highlights the lessor’s focus on asset preservation. David Roajs, a partner at the leasing firm, added that the broad spectrum of services offered by MTU makes the company an ideal partner.
AirPro News analysis
The aftermarket for CFM International LEAP engines is entering a critical growth phase. As early-build Airbus A320neo and Boeing 737 MAX aircraft approach their first major shop visits, global MRO capacity is becoming a bottleneck. Lessors like Patriot Dynamics are securing maintenance slots early to protect asset values and ensure continuous availability for their airline customers. For MTU, locking in a 10-year contract with an expanding lessor provides the predictable volume necessary to justify the heavy capital expenditure at the new Fort Worth site.
Photo Credit: MTU Aero Engines
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