A Chinese company and a Russian aviation institute have agreed
to launch a private airplane production project in northeast
China's Jilin Province.
The cooperation, with a total investment of 800 million yuan
(106 million U.S. dollars), is expected to produce 500 two-seat and
four-seat light aircraft and seaplanes for private use every year
with an estimated revenue of 800 million yuan.
According to the contract signed on Wednesday by Jilin-based
Dingxin Technology Co. Ltd. and the Moscow Aviation Institute at
the ongoing Northeast Asia Investment and Trade Expo, the Chinese
company will hold a 60-percent stake and the remaining 40 percent
will belong to the institute, also known as Russia's state
university of aerospace technologies.
The project, to be located in the Jilin Municipal Economic
Development Zone nearly 100 km east of the provincial capital
Changchun, is expected to partly meet increasing demand and to have
favorable business prospects, said Wang Yunli, an official with the
zone.
The planes are likely to enter the northeast Asian market after
the project is put into operation, said Matveenko Alexander,
principal of the institute, famous for its achievements that
contributed to the development of Russian aviation and
astronautics.
The two sides are still negotiating the details of the
project.
(Xinhua News Agency September 7, 2007)
