Benzinga | Oct 22, 2020 05:06PM EDT

Fortress Transportation, Infrastructure Investors Reports Collaboration With Lockheed Martin For 'The Module Factory'

Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) and Lockheed Martin (NYSE:LMT) Commercial Engine Solutions ("LMCES") announce an agreement to establish The Module Factory(tm), a dedicated commercial engine maintenance center focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. The Module Factory will be based at LMCES' 500,000 square foot facility in Montreal, Canada with a capacity for up to 300 shop visits per year. FTAI owns approximately 150 CFM56 engines today with plans to acquire up to 70 additional CFM56 engines by year-end. The initial term of the collaboration is seven years with an option to extend.

"We are proud to collaborate with Lockheed Martin on this innovative endeavor. Lockheed Martin has a long and proven history in aviation, and together we can offer an alternative cost-saving product to the aviation aftermarket. We believe The Module Factory, combined with our proprietary products and partnerships, will solidify FTAI's position to offer the lowest cost per cycle solution to our airline customers," said Joe Adams, FTAI's Chairman and Chief Executive Officer.

"At Lockheed Martin, providing full life-cycle engine maintenance, repair and overhaul is an integral part of our Sustainment business. Commercial Engine Solutions (LMCES) is excited to partner with FTAI in bringing The Module Factory solution to the market. Results will be reduced engine turn times, increased asset availability and the lowest possible cost for airline customers," said Jack Turnbill, President of LMCES.