Euskadi to Play a Key Role in the Development of the New Generation of Future Aircraft Engines through the First Transformative Industrial Project

• Imanol Pradales: “The Basque aeronautical and aerospace sector is a fundamental pillar of the Euskadi Industry Plan 2030. A sector with significant future driving potential”.

The Lehendakari, Imanol Pradales, presented this morning at the ITP Aero headquarters in Zamudio the first transformative industrial project of the Euskadi Industry Plan 2030, entitled ‘New Aircraft Engine Architectures for Sustainable and Competitive Aviation in Euskadi’, which is born with the ambition for Euskadi to play a relevant role worldwide in the new generation of future aircraft engines, based on the energy and digital transition.

The Lehendakari was accompanied at the presentation by the CEO of the ITP Aero Group, Eva Azoulay; the Chief Executive Officer of ITP Aero, Carlos Alzola; the Basque Government’s Regional Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi; and the senior representatives of the main companies, technology centres and agents of the Basque Science, Technology and Innovation Network (RVCTI) and the aeronautics and space cluster, HEGAN, which are part of the project.

The Lehendakari Imanol Pradales highlighted that “the Basque aeronautical and aerospace sector is a fundamental pillar of the Euskadi Industry Plan 2030. A sector with significant future driving potential that will have a clear objective: to be a key element in the transformation and growth of the Basque industrial fabric. By taking advantage of the tailwinds that may blow in the EU if we definitively take the appropriate decisions now to achieve our strategic autonomy as a global economic actor”. He also stressed that “this first transformative project of the Industry Plan addresses a major technological challenge: the development and industrialisation of new engine architectures that will translate into the aviation of the future”.

This first Transformative Project, privately led with public support, is framed within the Euskadi Industry Plan 2030. It has ITP Aero as the leading company, a Basque company that is a world leader in the field of aircraft propulsion, with its own technology and with a strong driving weight within the value chain of other companies in Euskadi.

The project develops new opportunities in the aeronautical sector, a strategic HAZI sector due to its future driving potential.

Strengthening Local Anchoring

It will mobilise more than 12 companies, half of which are SMEs, and will involve collaboration with the aeronautics and space cluster, HEGAN. The development of new aircraft engine technologies in Euskadi will involve six technology centres and agents of the Basque Science, Technology and Innovation Network (RVCTI).

The Transformative Project, which will be carried out over the next three years, entails an investment of more than €110 million over the next three years, of which more than €60 million will be allocated to R&D and technology development.

The impact of the project will include the creation of 800 jobs — 200 direct jobs and 600 indirect — and a significant potential increase in technology exports thanks to a leap in competitiveness.

This project strengthens the local anchoring of ITP Aero’s industrial and technological project in Euskadi, tightening ties with the value chain and technology centres.

This Transformative Project will position Euskadi as an international benchmark in the development of highly exportable, high value-added aeronautical products and services.

It represents a further step in the development of Euskadi’s aeronautical industry. It will enable the development of key technologies for the next generation of commercial aviation engines, as well as taking advanced manufacturing of critical components and the development of connected factories with integrated AI to the next level.

Transformative Project in a Sector with Significant Driving Potential in Basque Industry

The project is framed within the Basque Government’s industrial transformation strategy through the Euskadi Industry Plan 2030. The Plan is conceived to boost competitiveness, innovation and collaboration within Euskadi’s industrial value chain.

The Transformative Projects are at the heart of the Industry Plan and will provide a first-order boost to the country’s industrial transformation, structured around three lines of action of the Basque Government: more industry, better industry and fewer emissions.

The Transformative Projects will entail a qualitative leap in collaboration between Euskadi’s industrial leaders, their Basque supplier chain and the technology centres, thus enabling the country to gain in technology, differentiation and, therefore, competitiveness.

To this end, the Basque Government will make available to the Transformative Projects a battery of support measures, including existing and new programmes and tools.

In this way, it gives a decisive boost to the priority sectors identified in the Euskadi Industry Plan 2030: IRABAZI — automotive components, energy, advanced manufacturing, metallurgy and sustainable mobility — and HAZI — aeronautics/aerospace, biosanitary, advanced digital solutions, smart grids and storage, and renewable fuels —.

Further Transformative Projects will be presented in the coming weeks.

Technology Development for the Next Generation of Engines and Advanced Manufacturing that Will Produce a Significant Improvement in Competitiveness

Global aviation is immersed in a profound transformation, driven by the need to reduce emissions, integrate sustainable fuels, digitalise processes and strengthen robust supply chains adapted to new industrial paradigms.

The Basque aeronautical sector, led by ITP Aero, faces the challenge of accelerating the transition towards a more sustainable, digitalised and resilient industry, in line with European objectives of decarbonisation, technological autonomy and the creation of skilled employment.

ITP Aero, headquartered in Zamudio, is one of the world’s leading companies in the field of aircraft propulsion and is developing an ambitious growth and investment plan, having invested more than €200 million over the past three years and created more than 550 direct jobs in Euskadi during the same period. ITP plans to continue investing heavily in technology and industrial development. In addition, last year it inaugurated its ADMIRE centre, Aerospace Advanced Manufacturing Centre, which represented an investment of more than €24 million.

With the launch of a Transformative Project such as the one led by ITP Aero, Euskadi’s vision as a global benchmark in the aeronautical sector is reinforced and our country is placed in a leadership position to capture new opportunities, drive innovation and maximise the social and economic return on investment within a dynamic and competitive industrial market.

The implementation of this transformative project will enable Euskadi to develop the technologies required for the next generation of aircraft engines, more efficient and sustainable, positioning the sector as an international benchmark in technological innovation and sustainability.

Thanks to the integration of disruptive technologies — such as industrial digitalisation, artificial intelligence, advanced materials and automated processes — Basque companies will deepen advanced manufacturing, generating a distinctive technological offering and will be able to increase their competitiveness and access new niches in the international market.

Furthermore, the consolidation of a robust local value chain that is technologically cutting-edge will facilitate the attraction of new international clients and participation in major European and global programmes, reinforcing the image of Euskadi as a centre of excellence in the aeronautical industry.