CycloTech, an Austrian company pioneering CycloRotor propulsion technology, has established a subsidiary in Bavaria, marking a strategic expansion that aligns with Germany’s ambitions to strengthen its position as a leader in next-generation aviation.
The move has been strongly supported by the Bavarian state government, which is actively working to attract cutting-edge aerospace firms through political initiatives and investment programmes.
Bavaria’s aerospace push
The German government has ramped up support for AAM and electric vertical take-off and landing (eVTOL) aircraft. Bavaria, in particular, has attracted companies such as Lilium, Skyroads and now CycloTech.
Bavaria has long been a powerhouse of German industry, with a strong automotive and aerospace base. The state has been positioning itself as a hub for advanced air mobility (AAM) through initiatives such as the Hightech Agenda Bavaria, which has committed approximately €5.5 billion to future-focused technologies, including aerospace and mobility solutions. The expansion of CycloTech into Bavaria is the latest sign of the region’s success in drawing in high-tech aviation firms.
The area around Taufkirchen/Ottobrunn—already home to leading aerospace firms and the Technical University of Munich’s new aerospace faculty—offers an ideal ecosystem for CycloTech’s industrial scaling.
“Bavaria is a melting pot of possible partners, suppliers and customers for CycloTech. In addition, we tap into a great pool of experts and cutting-edge knowledge about electrical flight, which was built up in Bavaria over the last 10 years by companies like Lilium, Airbus and Siemens,” Chief Development Officer Markus Steinke told Zag Daily.
“From our German subsidiary we can also reach out to the Bavarian and the German (Federal) funding mechanisms which have not been accessible for us so far,” Steinke added.
Kerstin Schreyer, former State Minister and economic policy spokesperson for the CSU parliamentary group, hailed the decision, stating that CycloTech’s CycloRotor propulsion system could provide “crucial momentum” for the future of sustainable mobility.
“Bavaria is the innovation hub for aviation and aerospace in Germany – and with our Hightech Agenda Bavaria and the Aerospace Cluster, we provide an excellent platform for companies like CycloTech,” said Schreyer.
While CycloTech’s headquarters in Linz, Austria, will remain its centre for development and flight testing, the Bavarian subsidiary will focus on expanding research partnerships and laying the groundwork for serial production.