Top Biz News

CATIC eager for new investment

By You Xu (China Daily)
Updated: 2006-10-20 08:38

China National Aero-Technology Import & Export Corporation (CATIC), the Chinese aviation industry's largest trading company, is planning to attract new investment to its general company and trading subsidiary.

CATIC President Fu Shula told China Daily that the company, in which State-owned aviation firms China Aviation Industry Corporation I and China Aviation Industry Corporation II both have 50 per cent stakes, has become much more focused and competitive over the past couple of years.

Domestic companies with a strong financial background and resources are CATIC's preferred strategic investors, Fu said, without elaborating.

He added that the decision had already been made by CATIC's board of directors, although the restructuring programme requires the central government's approval.

"The main purpose of introducing strategic investors is to improve management and speed up the healthy development of the company," Fu said.

CATIC is one of China's largest trading companies, but it is also heavily involved in manufacturing, primarily liquid crystal displays, printed circuit boards and timepieces.

In 2005, it reported total assets of more than 24 billion yuan (US$3.04 billion).

The CATIC trading platform, which handles 80 per cent of China's aviation-related imports and exports, as well as a considerable trading volume in other fields, will be the company's other candidate for attracting strategic investors.

CATIC is renowned among Chinese firms for its overseas distribution network for engineering-related goods and services, and for products for government procurement.