November 06, 2008
AVIC I & II In Massive Merger of Aerospace Industry
The long anticipated consolidation and reorganization of China's aerospace industries is underway with a huge merger of the AVIC I and AVIC II conglomerates. The new single AVIC will be a temporary holding company with several big entities that most likely will each be spun off as independent public companies. The new AVIC is interested in a foreign acquisition possibly a European maker of small to medium size jet planes and AVIC may issue shares. The new AVIC consists of:
Transport Aircraft Corp.
Indepenent supplier expected to compete with Airbus and Boeing for production of Chinese large jets by CACC (COMAC) - see below.
Will own non-defense AVIC assets in Xi'An, Chengdu, Shenyang
"Defense Division"
All military related assets and production centers.
Assigned defense assets in Chengdu, Shenyang, Xi'An, and the military businesses of the Hongdu Aviation Industry Group.
AVICopter
Helicopter makers in Harbin, Changhe and Jingdezhen and other locations.
Aviation Engine Industry Corp.
Containing engine makers and research centers located in Liming, Xi'An, Chengdu, Zhuzhou, and China Gas Turbine of Jiangyou, Sichuan.
General Aviation Company
Production centers at Guizhou and Shijiazhuang of medium size planes.
Aviation Systems Company
Made up of dozens of prototype factories and research institutes across China including those located in Xi'An, Shanghai, and Nanjing.
Commercial Aircraft Corp of China (CACC)
Will become largely independent and rebranded COMAC.
The company will be the Chinese brand challenger to Boeing and Airbus.
And COMAC just got its first big order - 25 Chinese made ARJ21 jets - from GE.
Watch these businesses in the near to medium future. This is big new competition from China in an industry considered a "first world" prerogative.
Labels: aerospace, aircraft, avic, globalization, jet planes, military-industrial complex
# posted by Sinomania! : 11/06/2008 10:22:00 AM
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