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China to add foreign capital to aircraft program

By Chen Liying (Shanghai Daily)
Updated: 2007-03-29 15:05

China is likely to introduce foreign investors as risk sharing partners to its new project company for the country's large aircraft program, a senior industry official said inShanghaiyesterday.

"The country is considering to introduce foreign capital to the new project company," said Fu Shula, president of China National Aero-Technology Import & Export Corp, a unit co-owned by China Aviation Industry Corp I, or AVIC I, and AVIC II, the nation's two state-owned aircraft makers.

He said it's a global trend in the aircraft manufacturing industry to invite foreign partners to invest and co-develop the products and share the market risks.

"It's a probable option for China to adopt the mode in the development of its own big aircraft," he said.

Fu made the remarks after a ceremony marking the delivery of Boeing Co's 1,000th Next-Generation 737 horizontal stabilizers from Shanghai Aircraft Manufacturing Factory, also a unit of AVIC I.

A Boeing official said today that the US aircraft maker has no plan so far to participate in China's large aircraft program.

"Boeing welcomes competition," said Carolyn Corvi, vice president and general manager of Airplane Programs, Boeing Commercial Airplanes. "It's a good thing not only for us, but for our suppliers and airline customers."