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AVIC I Invests 1 Billion Yuan to Build Plant in Xi'an
Published: Apr 09, 2007
China's biggest airplane maker will invest 1 billion yuan (US$129.47 million) in Xi'an, the capital of Northwest China's Shaanxi Province, to build a plant for manufacturing aircraft engine parts.
The China Aviation Industry Corporation I's new plant in Xi'an's Economic & Technologic Zone will supply foreign clients, including General Electric, Pratt & Whitney and Rolls-Royce with jet engine parts, said Cai Yi, general manager of Xi'an Aero-engine (Group) Co, Ltd, a subsidiary company of AVIC I.
On April 5, AVIC I and the zone signed an agreement in Xi'an.
Its export value is expected to reach US$260 million annually.
Huang Shengshen, vice mayor of Xi'an, said the government would support the project as Xi'an has put aviation industry as one of its major economic propellers.
Xi'an has long been an important aviation base of China, and is also the strategic base of AVIC I, which has one third of its staff located there.
China planned to finish developing the prototype of its home-grown large-capacity passenger aircraft in 10 years. Shanghai is reported to become the assembly base for the trunk passenger airplanes while Xi'an is likely to be picked to host the assembly plant for cargo planes. However, there has been no official announcement as yet.
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