China seeks investor for aircraft-engine company

By Leithen Francis

China is open to having a foreign or domestic investor buy up to 30% of China Aviation Industry Corporation's (AVIC) new aircraft-engine company, the firm tasked with developing and building jet engines for the country's new large commercial aircraft.

State-run newspaper Shanghai Securities News made the announcement by quoting from senior AVIC official Tan Ruisong.

It says the remaining 70% equity is to be split between AVIC, with a 40% stake, the Shanghai municipal government, with 15% and electricity conglomerate Shanghai Electric, with 15%.

Tan announced in November that AVIC would be establishing a Shanghai-based joint venture in 2009 with the Shanghai municipal government to develop and build an engine for China's new large commercial aircraft.

State-owned Commercial Aircraft Corporation of China (Comac) is developing the new 150-seat aircraft which is due to enter service before 2020.

© Reed Business Information 2009