China Aviation Industry Corp. I (AVIC I) on Tuesday celebrated
the establishment of two civil aircraft joint ventures based in
eastern Shenyang and southwestern Chengdu.
The two companies had taken the lead in the nation to absorb
investment from the capital market instead of solely relying on
government support as the military aircraft industry used to do,
said Lin Zuoming, general manager of AVIC I.
The registered investment of each company was 500 million yuan
(US$65.8 million).
The Shenyang company is a joint venture of Xi'an Aircraft
International Corp. (XAIC), Shenyang Aircraft Corp. and an
investment company under AVIC I which hold 45 percent, 40 percent
and 15 percent of the company's shares respectively.
The Chengdu company is jointly invested by Xi'an Aircraft
International Corp., Chengdu Aircraft Industrial Co. Ltd. and an
investment company under AVIC I which have 45 percent, 40 percent
and 15 percent of the company's shares respectively.
Gao Dacheng, board chairman of XAIC, said his company would
invest 225 million yuan (US$29.6 million) to each of the two
companies.
AVIC I is the parent company of Xi'an Aircraft Industry Corp.
Ltd., Shenyang Aircraft Industry Corp. Ltd.,Chengdu Aircraft
Industrial Co. Ltd. and Shanghai Aviation Industry Company.
As a large state-owned industrial group, AVIC I develops and
manufactures fighter, fighter bomber, bomber, trainer aircraft and
so on. It also provides accessories for Airbus and Boeing.
At present, its Xi'an subsidiary mainly manufactures aerofoil
and airframe, the Shenyang company produces the plane's back parts
while the Chengdu company makes the front parts.
(Xinhua News Agency August 29 2007)
