AVIC Commercial Aircraft Engine Co has signed a memorandum of understanding with its German counterpart MTU Aero Engine to research and develop domestically made engines for China's jumbo jet project but they haven't decided on the form of cooperation, the domestic engine supplier said yesterday.

"We will own independent intellectual property rights of the engines no matter if it is jointly or independently researched," said Zhang Jian, general manager of AVIC Commercial Aircraft Engine.

MTU is Germany's leading engine maker and is strong in the development, manufacturing and repair of commercial and military engines. The two firms have been discussing the cooperation for half a year.

The Chinese engine supplier also announced yesterday that it will choose Lingang New City in Shanghai's Pudong New Area to base assembly lines for the jumbo jet engines, including the LEAP-X1C engines. But it didn't reveal a timetable.

Last month, CFM International, a 50-50 joint venture between French aerospace group Safran and United States conglomerate General Electric, signed an agreement with the Chinese jumbo jet maker to supply LEAP-X1C engines that can save 16 percent in fuel consumption and cut 16 percent of carbon dioxide emissions.

CFM also signed a memorandum of understanding with AVIC Commercial Aircraft Engine to jointly build an assembly line.

China's jumbo jet, codenamed C919, will be equipped with foreign-made engines for the maiden flight in 2014, and AVIC Commercial Aircraft Engine will produce homemade engines for the jet in 2016.

China wants to make its own 150-seat commercial jet to reduce reliance on foreign jet makers such as Boeing and Airbus.

It forecast sales of C919 jets at 2,000 units within 20 years.