In the bid to reduce its reliance on the Western suppliers of commercial aircraft engines, China has launched its first aircraft-engine manufacturer with registered capital of 50 billion yuan. The new Aero-Engine Group of China, comprising of about 96,000 employees will emphasize designing, manufacturing and testing of both military and commercial engines. China's cabinet, Beijing municipal government, the Aviation Industry Corp of China (A.V.I.C.) and Commercial Aircraft Corp of China have invested in the new venture.
China has shifted its focus on developing home-grown and high-tech products and services in aviation, rail and nuclear power sectors so as to compete with global players. President Xi Jinping described the launch of the new company as a “strategic move” for building the country’s image as a global aviation power, reports the BBC. Currently, China manufactures its own planes but buys aircraft engines from other countries.
In March, China’s state-owned A.V.I.C. announced its plan to merge all of its aircraft businesses, worth 129 billion yuan, in order to take on aviation giants like United Technologies Corp's (UTX.N) aircraft engine maker Pratt & Whitney, writes Reuters.