According to China Business News, preparations for merging AVIC I (China Aviation Industry Corporation I) and AVIC II (China Aviation Industry Corporation II) are almost complete, and a new AVIC (China Aviation Industry Corporation) will launch next month, with a market listing to follow the amalgamation.
The reporter learns that there are to be 14 departments at AVIC headquarters, while a parent-subsidiary corporate system is to be implemented at the same time. The company will set up 6 independent subsidiaries including a Transport Corporation, Engine Company, and Helicopters Corporation, along with two Research and two Development Institutes, forming 10 major business units including defense, engineering, power, avionics, mechanical and electrical, and financial.
The current organizational structure, business units, and staffing requirements are largely complete and will be launched after the Zhuhai Air Show in early November. According to the proposals, AVIC aiming to achieve one-trillion yuan sales and a placing among the top-500 enterprises by 2017 through a combination of five strategies: market-oriented reforms, professional integration, capital operation, international development and industrial development.
After the launch, the AVIC subsidiaries will each be listed in turn, with recruitment of new staff under way - even Vice-Presidential positions in branch companies are open to recruits from China and abroad. In addition to reorganizing the business structure among different subsidiaries of AVIC I and AVIC II, more than 20 listed companies with A and H shares will be developed in the six subsidiaries according to different lines of business activity. These companies will include Xi’an Aircraft International Corporation, the Liyuan Hydraulic Company and China Aerospace Science and Industry Corporation (CASIC).
A senior manager from AVIC revealed in a recent interview with China Business News that Xi'an Aircraft Industry of AVIC I will be an important part in Transport Corporation, and Helicopters Corporation will be supported by Hafei Group of AVIC II, while General Aviation Corporation will integrate assets from AVIC I and AVIC II, such as Shijiazhuang Aircraft Industry Co., and carry out research on a new general aviation aircraft.
Lin Zuoming, previous head of AVIC, said that in the future different subsidiaries may hold mutual shares and would actively promote capital operations, including A shares and overseas stock market listings, and also target international capital investment.
For more details, please read the complete story in Chinese:
(http://www.china-cbn.com/s/n/000004/20081030/000000101754.shtml)
(China.org.cn by Jessica Zhang, October 30, 2008)
