China to create aerospace giant
Two leading Chinese aircraft manufacturers are joining forces as the nation consolidates its aerospace industry amid an ambitious drive to build jumbo jets, state media reported on Tuesday.
By Agencies |
SHANGHAI: Two leading Chinese aircraft manufacturers are joining forces as the nation consolidates its aerospace industry amid an ambitious drive to build jumbo jets, state media reported on Tuesday.
The long-anticipated merger of state-owned firms China Aviation Industry Corp. I (AVIC I) and AVIC II has received government approval and will create a new firm named the China Aviation Industry Group, the Xinhua news agency said.
"China must centralise the research and production resources of its aerospace industry in order to close the gap with western developed countries as soon as possible," an unnamed expert with a think tank under the State Council, or cabinet, was quoted as saying.
The industry group will be established in July, the report said, without elaborating on the financial details.
China set up a company in May to build passenger jets with more than 150 seats and other large aircraft, triggering expectations that it could eventually compete against planes made by Boeing and Airbus.
Both AVIC I and AVIC II have stakes in the jumbo jet maker, which was established with a total registered capital of 19 billion yuan (2.8 billion dollars).
The long-anticipated merger of state-owned firms China Aviation Industry Corp. I (AVIC I) and AVIC II has received government approval and will create a new firm named the China Aviation Industry Group, the Xinhua news agency said.
"China must centralise the research and production resources of its aerospace industry in order to close the gap with western developed countries as soon as possible," an unnamed expert with a think tank under the State Council, or cabinet, was quoted as saying.
The industry group will be established in July, the report said, without elaborating on the financial details.
China set up a company in May to build passenger jets with more than 150 seats and other large aircraft, triggering expectations that it could eventually compete against planes made by Boeing and Airbus.
Both AVIC I and AVIC II have stakes in the jumbo jet maker, which was established with a total registered capital of 19 billion yuan (2.8 billion dollars).
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