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NAFCO Secures 5-Year Deal with MTU Aero Engines, Expands Production in Malaysia
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2025-07-02
The leading aerospace fastener manufacturer announced a major five-year cooperation agreement with German aviation engine giant MTU Aero Engines at the 2025 Paris Air Show. The deal not only strengthens their existing collaboration in aerospace fasteners in Taiwan but also extends to precision machining at NAFCO’s Suzhou plant in China, reflecting the company’s strategic global supply chain deployment. MTU Aero Engines, a top global developer and maintainer of commercial and military aircraft engines, serves about one-third of the world’s commercial aircraft and reported €7.5 billion revenue in 2024. In addition, NAFCO’s subsidiary, MY NAFCO PRECISION SDN. BHD, recently invested approximately NT$130 million to acquire land and factory facilities in Seremban, Negeri Sembilan. This expansion supports NAFCO’s global production footprint for aerospace and automotive sectors. The Malaysian plant, officially opened in April 2025, is undergoing further capacity and equipment upgrades with total investments expected to exceed US$40 million. NAFCO is optimistic about stable demand in the aerospace market this year, boosted by urgent orders following a serious fire at Boeing’s SPS Technologies plant earlier in 2025. These developments position NAFCO to enhance revenue growth over the next two to three quarters.
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MTU Aero Engines
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MY NAFCO PRECISION SDN. BHD
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