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Foreign Capitals Share Chinese Booming Aviation PDF Print E-mail
Media Release

The development of China-made large passenger aircraft C919 and the sustainable growth of Chinese aviation market attract more and more international manufacturers and suppliers who rely on their technological superiority to exchange the opportunity for Chinese market entry by joint ventures with AVIC and other Chinese enterprises.

Ron Ho, Managing Director of Rockwell Collins China, a global trunk airliner avionics system supplier, released at Zhuhai Airshow that Rockwell Collins and China Leihua Electronic Technology Research Institute (LETRI), a subsidiary of Aviation Industry Corporation of China (AVIC), are establishing AVIC Leihua Rockwell Collins Avionics Company. This joint venture will focus on bringing the latest surveillance products to the Commercial Aircraft Corporation of China Ltd. (COMAC) C919 aircraft. Currently the signed contract is waiting for the approval from Ministry of Commerce.

Mr Ho said the joint venture established by the two parties will locate in Wuxi, with its proportion of shares being 50:50.

During this China Airshow, AVIC GE Civil Avionics System Co,. Ltd., the joint venture between General Electronics and another subsidiary company of AVIC, also officially unveiled its new brand “AVIAGE SYSTEMS”.

Nate Manning, CEO and general manager of AVIAGE SYSTEMS, revealed to our reporter that this joint-venture company is an equally-owned company and it is also the first time that GE has cooperated with Chinese enterprises in the core field of aircraft manufacture to build an equally-owned company. GE will also integrate its civil avionics business into the joint-venture company. The starting project of the company is to provide core avionics system, display system, airborne maintenance system and avionics system comprehensive service for C919.

It’s worth noting that GE has already won the bid of C919 supporting engine order through its joint venture company CFM International Company, and engine and avionics systems are the two most important systems for an aircraft, with the two systems’ value being up to around 40% of aircraft manufacture costs.

Meanwhile, LIEBHERR AVIC Landing gear Advanced Manufacturing Corporation (LAMC, Changsha) Co., Ltd was officially inaugurated during this airshow and it is also a joint venture company between AVIC LAMC and German LIEBHERR Astronavigation Company, with a proportion of shares being 50:50 and an aggregate investment being 12 million USD, that will assume the development, production, evidence-obtain and after-sale service for C919 landing gear system.

Ron Ho disclosed that, besides the joint venture with AVIC, the company has signed a contract with CETC (China Electronics Technology Group Corporation) Avionics to jointly build a joint venture for developing communication and navigation system for C919 aircraft project.

Although C919 has not made its first flight and is even far from delivery, foreign manufacturers have already foreseen the potential business opportunities. Multi- industrial-products manufacturer Eaton Corporation estimated that its joint venture with Shanghai Aircraft Manufacture Corporation (SAMC) subordinated to COMAC for design, development and manufacture of hydraulic and fuel pipeline systems for C919 will bring 1.8 billion USD from this project.

In addition, Eaton has cooperated with AVIC Shanghai Aviation Electric Co., Ltd. to provide cockpit control panel components and dimming control system for large aircrafts and it is estimated that the potential value of this project will exceed 425 million USD during the full life cycle of C919.

(By Chen Shanshan, First Finance Daily)