AVIC To Consolidate Aircraft Engine Making

October 12, 2015

Aviation Industry Corporation of China (AVIC) is consolidating its aircraft engine manufacturing units as part of a wider restructuring of the state-owned aerospace company aimed at boosting competitiveness.

Trading was halted at Sichuan Chengfa Aero-Science and Technology, AVIC Aero-Engine Controls and AVIC Aviation Engine last week.

An executive at Sichuan Chengfa said the companies were currently working on an "asset consolidation plan" and that trading could resume as early as this week if the plan is ready.

Industry executives say AVIC is likely to merge the three subsidiaries to create a single company that would be better placed to make globally competitive aircraft engines.

China's government is encouraging state-owned firms to merge in a bid to create innovative, globally competitive firms able to export Chinese know-how and high-end manufacturing to the world.

AVIC is also reportedly preparing to merge another three subsidiaries: AVIC Aircraft, AVIC Capital and AVIC Electromechanical System.

(Reuters)