ATW Daily News

C919 engine plans take shape

Wednesday January 13, 2010

AVIC's Commercial Aircraft Engine Co. yesterday began construction of its CNY3.23 billion ($472.5 million) Shanghai research and development facility, which is scheduled to be completed in 2013 and will include and R&D center and an airworthiness testing center as well as engineering, liaison and customer service facilities.

GM Zhang Jian said at the ceremony that the base initially will focus primarily on production of a powerplant for the 150-seat C919, which is scheduled to enter service in 2016. CAEC signed an MOU with MTU Aero Engines last week covering cooperation in the development and production of an engine. The companies are discussing various options including subcontracting or establishment of a joint venture (ATWOnline, Jan. 5).

The company also selected CFM International's LEAP-X1C to be the C919's first engine. "The C919 will be powered by a domestically produced engine in the end, which is our national policy," Zhang promised. "In the future, we would even consider producing powerplants for 250-seat widebodies, regional aircraft and business jets." CAEC plans to recruit foreign talent to help with those initiatives.

Meanwhile, it still is seeking a strategic investor for a 30% stake. The company was launched in January 2009. AVIC holds 40% and Shanghai Electric Group and Shanghai Guosheng Group each hold 15%. Zhang said CAEC has received interest from state-owned and private companies in China as well as Western investors.

by Katie Cantle

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