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Hafei soars on news of engine-making contract
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Hafei Aviation Industry Co. jumped by the daily limit of 10 percent yesterday on news it will produce jet engine parts for Honeywell International Inc.

The company, based in Heilongjiang Province, signed a contract with United Kingdom-based GKN Plc on Wednesday to build engine parts for 1,350 aircraft from 2011 to 2028, it said in a statement to the Shanghai Stock Exchange yesterday, without revealing the contract value.

GKN in July won a US$750-million contract from Honeywell to make engine nacelles for the HTF7000 series business-jet turbofan.

"It is the first cooperation between Hafei and GKN, and Hafei is expected to win more projects when its performance is better known," said Pang Linlin, an analyst at Southwest Securities Co..

Hafei's share price jumped 10 percent to 7.84 yuan yesterday while the Shanghai Composite Index slid 2.66 percent to 1,713.69 points.

Hafei said in a separate statement yesterday that it signed a framework pact with China National Aero-Technology Import and Export Corp to sell the firm 20 Y12F jets between 2011 and 2015.

The Y12F is a light universal aircraft which is set to make its maiden flight next year, the statement said.

"The Y12 jets will be sold in Asia, Africa and Latin America," Pang said.

(Shanghai Daily November 7, 2008)

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