After months of speculation, the US$1billion Chinese consortium,
which is a joint venture partner of Airbus for the A320 aircraft
final assembly line in Tianjin, yesterday announced its shareholding
structure.
The formation of the partnership is seen as a major step in
clearing the way for the launch of a project that could have a
lasting impact in the development of Tianjin as an economic center
in North China.
The expected technology transfer from the joint venture with
Airbus could also help expedite China's quest to develop its own
large commercial aircraft. ?
The Chinese consortium, Tianjin Zhongtian Aviation Industry
Investment Co Ltd, will have a registered capital of 300 million
yuan (US$38 million).
Tianjin Free Trade Zone Investment Co will invest 180 million
yuan (US$23 million) and control 60 percent of the consortium. The
remainder will be equally shared between China Aviation Industry
Corp (AVIC) I and AVIC II. These are China's two leading aviation
manufacturers.
AVIC II's 20 percent stake is again equally divided between its
two subsidiaries Jiangxi Hongdu Aviation Industry Co Ltd and Hafei
Aviation Industry Co Ltd, according to a joint statement by the two
listed companies to the Shanghai Stock Exchange.
But details of the work structure of the Chinese companies
wasn't available. "We haven't reached a conclusion about how to
share the work in the Tianjin plant," said Chen Guanjun, director
of AVIC I's department of marketing and international
cooperation.
Media reports have said Airbus would hold 51 percent of the
joint venture but the European aircraft maker declined to comment.
Airbus selected Tianjin in May to establish its first aircraft
assembly line outside Europe.
The European giant said earlier that the Tianjin plant would
employ about 600 people when it starts operation in 2009. The port
city is also likely to attract investments from other
aviation-related businesses such as aircraft coatings and cabin
interior production.?
"It would be easier for China to realize the target of building
its own trunk-line aircraft by involving AVIC I and AVIC II in the
Tianjin project," said Li Lei, an aviation analyst with CITIC China
Securities.
China plans to develop its own trunk-line commercial aircraft
with at least 150 seats during the 11th Five-Year Plan (2006-10).
AVIC I have been concentrating on developing regional jets with
fewer than 100 seats. The ARJ21, designed by AVIC I, has received
71 orders and will enter commercial service in 2009.
"We want to become the backbone of China's trunk-line aircraft
making industry," Hu Wenmin, AVIC I's vice-president, said
earlier.
AVIC I used to collaborate with McDonnell Douglas in making
MD-80 and MD-90 aircraft.
(China Daily November 21, 2006)