China to build largest aero-engine outsourcing base

BEIJING: China plans to build its largest outsourcing base for aero-engine with an investment of $100 million, which will supply aero parts for Boeing and Airbus.

The newly-approved bonded area in the southwest Guizhou province will realise imports and exports of $200 million in 2015, the headquarters for the comprehensive bonded zone in Guiyang said today.

Construction of 40,000-square-metre workshops has started for a joint venture of AVIC International Holding Corporation and AVIC Liyang Aero-Engine Corporation, it said.

With an investment of $100 million, the project will provide aero parts for Boeing and Airbus, the statement said.

Some production lines of AVIC Liyang Aero-Engine Corporation's aviation engine industry base in a high-tech zone in Guiyang have started operation.

Liyang Aero-Engine will invest 4 billion yuan in the base, state-run Xinhua news agency reported.

China's cabinet approved last month the establishment of the comprehensive bonded zone in Guiyang with an area of over three square km.

The zone will be put into operation in September next year. It will enjoy the same tax and foreign exchange policies as the Yangshan Free Trade Port Area, China's first bonded port established in Shanghai in 2005.