The Czech government has approved an investment to secure the development and production of GE Aviation’s Advanced Turboprop (ATP) family in the Czech Republic. In January, GE Aviation stated its intention to build the ATP in the Czech Republic, but negotiations have been ongoing over the financial incentives. Czech Trade and Industry Minister Jan Mládek announced last week that the “Czech government today approved cooperation with GE Aviation,” and added, “aviation engines will be developed, examined and produced in the Czech Republic.” The approval reportedly includes an investment in a new $385 million facility.
“We’re pleased with the government approval of funds for ATP production,” GE Aviation said, but emphasized the formal agreement has not yet been settled and signed. “GE's hope is to have a formal agreement reached in the coming months,” the company said. “There is still work to be done, but it is moving in a positive direction.”
GE Aviation is investing $1 billion on the program in Europe, with more than 400 engineers in Italy, Germany, Poland and the Czech Republic currently working on the engine, which was selected to power Textron Aviation’s new Denali turboprop single. Full engine test is planned for the end of 2017.
In January, the company outlined plans for a GE Turboprop Center of Excellence that would open in 2020 to build the ATP. The center is expected to create more than 500 new jobs, a 125-percent boost over current employment in the Czech Republic, the company said. The center builds on GE’s previous investments in the Czech Republic, including the 2008 acquisition of Walter Engine, GE noted, adding its “current turboprop factory in Prague is a great success.”