China set to announce merger plans for AVIC I & II aerospace manufacturing concerns
28 May 2008
Beijing: The merger of Chinese aerospace manufacturers, AVIC I and AVIC II, seen as an essential component of China's ambition to build a "jumbo aircraft," is expected to take place soon, according to AVIC II's general legal counsel, Li Shentian.
"As far as I am concerned, we do have an initial plan for integration of AVIC I and AVIC II. But it's not the time to formally disclose the specific details now as it still needs to be approved by Beijing." Li said.
According to reports, the integration plan may emerge as early as next month and will center on merging AVIC I and AVIC II into one company. The combined company will then comprise different departments covering engine, airborne equipment, helicopter manufacturing, small aircraft production and other activities.
The merger is an attempt to consolidate China's aerospace manufacturing resources, which according to some analysts is badly scattered between AVIC I and AVIC II.
