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6b yuan venture to tackle project
The mainland plans  to develop its own jet engines to power  the country's first large commercial aircraft.
Aviation Industry Corp of China (Avic) would set up a joint venture with the Shanghai government to develop a commercial aircraft engine, executive vice-president Tan Ruisong said yesterday at the Zhuhai Air Show.
The  venture would be launched with 6 billion yuan (HK$6.79 billion) in registered capital. 'It is part of a strategic move to  put our big aircraft  in the sky,' Mr Tan said.
Previously, the mainland subcontracted the engine ring or engine disk to international  companies such as Rolls-Royce and General Electric.
Although the big-engine project was a costly and risky move, it was worth attempting because the  aero-engine industry could stimulate  supporting industries,  Mr Tan said.
The big-aircraft project will procure parts and  design through international tendering.  Potential suppliers for the big engine, developed by Avic, would compete  on a level playing field, Mr Tan said.
'We do not rule out the possibility of co-operation, or even inviting international partners, such as GE and Rolls Royce, as strategic partners,' Mr Tan said. 'As long as they are eager  and the Chinese government allows them to do so.'
It is not known what restrictions Beijing will impose on foreign holdings in the big-engine firm,  as China considers the industry strategic.
In addition to being the site of the  project, Shanghai has been selected as the location for the big-aircraft assembly line.
The Shanghai government has set aside about five square kilometres at the Shanghai Lingang Economic Development Zone for the aviation industry, according to  city officials.
Market observers said the project would enable Shanghai to compete with Tianjin as an aviation  base. Tianjin  was chosen as the assembly  site for the Airbus 320 family.
Mr Tan said the feasibility study for the big-engine programme would be finished in six months.
'Big aircraft' refers to  airplanes that can  hold up to 200 passengers.
Avic was incorporated in September by combining Avic I and Avic II. It is now an integrated aviation corporation comprising 10 business units: defence, transport aircraft, aviation engines, helicopters, avionics, general aviation aircraft, aviation research and development, flight testing, trade and logistics and asset management. It has nearly 200 subsidiaries and more than 20 listed companies.
The company has developed and manufactured several commercial aircraft including the corporate jet Modern Ark 60, MA 600 and MA 700. The MA 60 and MA 600 have received more than 130 orders, with 40 of them having already been delivered. It also manufactures several types of aero-engines, including turboprop engines, turbo-shaft engines, turbojets and turbofans.
Avic is also the major developer and supplier of  the home-grown regional ARJ21 and the big aircraft.
Avic president Lin Zuoming said the company was aiming at 1 trillion yuan in sales in 10 years.



Avic plans to develop engine for big aircraft