AVIC Commercial Aircraft Engine Co. (AVIC/ACAE) Tuesday started building a research and development center to develop engines for domestic-made jumbo jets in Shanghai.

The center is responsible for developing home-made engines for the 150-seat C919 and a 250-seat model.

Tan Ruisong, vice general manager of AVIC, said the ground-breaking ceremony marked a major milestone for China's commercial aircraft engine industry.

The center in Minhang District covers an area of 30 hectares and will have a floor area of 300,000 square meters. It costs 3.23 billion yuan (US$473 million) and will be finished in 2013.

The center will accommodate nearly 3,000 research staff, according to the company.

According to an aviation deal signed last month, the aerospace giant CFM International is to build an assembly line in China to supply engines to the Commercial Aircraft Corporation of China for the country's home-grown jetliner C919.

The CFM is jointly established by the French aerospace and defence industries group Safran and U.S. conglomerate General Electric.

The C919, which is expected to enter service in 2016, is widely regarded as a future competitor to the Airbus A320 and Boeing 737 series.