SAO PAULO, July 25 (Reuters) - Brazilian planemaker

Embraer ( ERJ ) on Thursday opened a maintenance hub for

Pratt & Whitney (P&W) engines in Portugal, which it expects to

bring in an additional 600 million euros ($653 million) in

revenues per year once fully operational.

The move comes amid surging demand for aircraft maintenance

as airlines and manufacturers struggle with supply chain snags

in the wake of the pandemic and more frequent engine repairs.

The P&W-authorized maintenance facility at Embraer's ( ERJ ) OGMA

subsidiary near Lisbon will be able to overhaul P&W engines that

power jets made both by the Brazilian firm and larger peer

Airbus.

P&W, part of RTX Corp ( RTX ), has struggled since last year

with a rare powder metal defect affecting mainly the Airbus

A320neo jet, which led it to call for accelerated inspections

that airlines say can take up to almost a year to complete.

"Demand is high. All shops in the world have been full," the

head of Embraer's ( ERJ ) Services & Support unit, Carlos Naufel, told

Reuters. "The first engines we are receiving are from European

airlines, but going forward they could come from anywhere."

Consultancy Bain said in a report last week that airlines

are facing their longest ever waits for engine maintenance, with

demand likely to peak in 2026, constraining carriers' growth and

adding costs.

OGMA, which already provides maintenance for Rolls-Royce

engines, will initially offer services for P&W's

PW1100G-JM geared turbofan engine, which powers the A320neo

family.

Starting in 2026, it also plans to overhaul the PW1900G

engine equipping Embraer's ( ERJ ) next-generation E2 jets.

At its peak, the facility is expected to have an annual

capacity for 240 engines and generate 600 million euros in

revenues - more than the $500 million the firm had forecast when

it said last year it planned to open the hub.

Naufel did not detail the initial capacity nor when the peak

should be reached, but said there would be a ramp-up year after

year.

Embraer's ( ERJ ) Services & Support unit in 2023 accounted for 27%

of group revenues, or $1.4 billion. Its backlog at the end of

last year stood at a record $3.1 billion.

Naufel said the unit expects to double yearly revenues by

2030.

"If you ask me what the term is for services and support,

I'll say 'accelerated growth'," the executive added. "The sector

is heated and we have been keeping up with it."

($1 = 0.9194 euros)