CHINA launched its first jumbo jet company in Shanghai yesterday, with the aim of developing it into a globally competitive aircraft manufacturer.
Commercial Aircraft Corporation of China, headquartered in Shanghai, has a registered capital of 19 billion yuan (US$2.7 billion), and Zhang Qingwei, minister of the State Commission of Science, Technology and Industry for National Defense, has been appointed as its chairman.
The State-owned Assets Supervision and Administration Commission invested 6 billion yuan in the company to become its biggest shareholder and the Shanghai government injected 5 billion yuan via Guosheng Group, its investment arm.
The country's two aircraft makers are also involved. China Aviation Industry Corp I, or AVIC I, injected assets and cash valued at 4 billion yuan in exchange for a stake in the company, while AVIC II will invest 1 billion yuan.
Aluminum Corp of China, Baosteel Group and Sinochem Corp will each invest 1 billion yuan.
"We will keep seeking investments from foreign ventures as well as private companies," Zhang said on the sidelines of the opening ceremony of the new company.
"We have launched research and development on nearly 20 key technologies in four sectors, including design, system integration and assembling," Zhang said. "The company will introduce the product to the market step by step after the country puts the ARJ21 jet into mass production next year."
Zhang said the ARJ21 will have its maiden flight by the end of this year.
The 85-seater ARJ21, the first Chinese-made commercial jet developed by China Aviation Industry Corp I, had its maiden flight postponed last month because of delays in the delivery of key components. ARJ21 is seen as the precursor to a jumbo jet.
"Establishing the company is the first step of a Long March and we have a lot to do to keep pace with overseas aircraft makers," Zhang said. "We will make use of global resources and cooperate with overseas suppliers, as our target is to sell locally made aircraft to global clients."
China should by all means conduct overall design and final assembly of large aircraft by itself. The research and production of engines, airborne equipment and material will also demand independent effort, Premier Wen Jiabao said yesterday.
The country should attach great importance to using world technical resources in an effective way, and introducing and adopting advanced technologies, said Wen.
Jin Zhuanglong, general manager of the company, said China's development of a jumbo jet won't threaten overseas jet makers as the project will require a long time.
Jin said in an interview with Xinhua news agency that it was too early to say when a Chinese-developed jumbo jet would be taking off, as it would take a long time to develop talent and conduct research.
"According to the development history of Airbus and Boeing, the development and success of civil planes cannot be realized by relying on one or two generations," he said.
China's Cabinet approved the setting up of the new company in February 2007. It will make the country capable of building aircraft with a take-off weight of more than 100 metric tons or planes with more than 150 seats.