AVIC building engine facility
The Commercial Aircraft Engine Co. (CAEC), a subsidiary of Mainland aviation manufacturing conglomerate, Aviation Industry Corp. of China (AVIC), has started construction on its US$472.5 million engine research and development complex in Shanghai, with completion planned for 2013. The company has signed an agreement with MTU Aero Engines for development and production of an engine for its planned C919 150-seat passenger airliner, which will be launched in 2016.
CAEC has chosen CFMI’s LEAP – X1C as the launch engine for the C919, but said Mainland manufactured engines ultimately will power the mid-sized aircraft. Partners in year-old CAEC are AVIC (40%), Shanghai Electric Group (15%) and Shanghai Guosheng Group (15%). The company said several Chinese and western investors have expressed interest in acquiring the remaining 30% of CAEC.
Late last year, General Electric Co. signed a joint venture agreement (50/50) with AVIC to supply avionics systems - from China - to the world’s airline manufacturers. The venture is awaiting regulatory approval from the Chinese government.
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February 2010 >
Business Round Up
