CHINA Commercial Aircraft Co Ltd, the nation's first manufacturer of large jets, will be set up soon, Shanghai Securities News reported yesterday.
The company will be established with a registered capital of 19 billion yuan (US$2.7 billion), slightly less than a previous report of 20 billion yuan, the newspaper quoted an unidentified source as saying.
China's State-owned Assets Supervision and Administration Commission will invest six billion yuan into the firm to become its biggest shareholder and the Shanghai government will inject five billion yuan via Guosheng Group, its investment arm.
The country's two aircraft makers China Aviation Industry Corp I, or AVIC I, will inject assets and cash, valued at four billion yuan, in exchange for a stake in the company while AVIC II will invest one billion yuan, the report said.
Aluminum Corp of China, Baosteel Group and Sinochem Corp will each invest one billion yuan for a stake, according to the report.
ARJ21 deal
Large jets can seat more than 150 passengers or can carry a payload of more than 100 tons.
A senior official with AVIC I said in an earlier report that the project's total investment will be between 50 billion yuan and 60 billion yuan and will need 10 or more years to accomplish.
Meanwhile Xinhua news agency reported that China National Aero-Technology Import and Export Corp yesterday had signed a framework agreement for strategic cooperation with AVIC I Commercial Aircraft Co Ltd on the international business of the ARJ21, China's first home-grown regional jet.
The two sides would cooperate in the market development, after-sales service and overseas purchasing of the ARJ21 which is designed to seat between 70 and 90 people.