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AVIC to establish 3 subsidiaries in Beijing
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Aviation Industry Corporation of China (AVIC), the country's leading aviation manufacturer, signed a framework agreement with the Beijing municipal government on March 2 to establish three subsidiaries in Beijing with a total investment of 21 billion yuan (US$3.07 billion).

The three companies are respectively involved in airplane engines, airborne systems and the development of composite materials.

The airplane engine company and composite materials research and development center will be located in Shunyi district, about 30 kilometers northeast of central Beijing. The Beijing government has been promoting the district, where the Beijing Capital International Airport is located, into an aeronautic industry zone.

The airborne systems company will be located in the Zhongguancun Aviation Science Park of Haidian district.

AVIC has been consolidating its diverse businesses after the merger of China's State-owned aviation manufacturers, AVIC I and AVIC II, last year. AVIC now has six subsidiaries across the country specializing in different businesses. The six companies are respectively involved in transporters, airplane engines, helicopters, general aviation, airborne systems and aviation imports and exports.

AVIC said in January that the helicopter company will be located in Tianjin. The Tianjin municipal government will hold a 31 percent stake in the company.

(China Daily March 4, 2009)

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