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)
