China's leading aviation manufacturer has set up an aircraft production company in Xi'an, capital of Shaanxi province.

Lin Zuoming, the general manager of the Aviation Industry Corp of China (AVIC), said yesterday that the new company, AVIC Aircraft Corporation Ltd, is to provide parts for the existing domestic jumbo jet project.

Meanwhile, the new company will also have the principal responsibility for designing and manufacturing large and medium-sized transporters, bombers and special purpose aircraft, he said.