General Electric is forming a new joint venture company with State-owned Chinese aircraft company Aviation Industry Corporation (AVIC) to develop and market integrated avionics systems for commercial aircraft customers.
The announcement made late on Saturday, a day prior to the US President Barack Obama making his first visit first China, is part of "GE's Clean Technology Week in China" activities, the New York-based company said.
The 50:50 JV, which will be launched by mid-2010, subject to receiving all required regulatory approvals, will be based in China and its aim will be to target the US and global markets.
China will have a large market demand for avionics systems and equipment since it is expected to build around 2,500 large aircrafts by 2020, which will put the market value of avionics systems and equipment in China to be around $26 billion, according to analysts.
The new avionics company, to be headquartered in China, will offer fully integrated, open architecture avionics and services for future commercial aircraft programs.
Fairfield, Connecticut-based GE said that it will build on its extensive avionics capabilities and it's China Technology Center in Shanghai to create a technology center of excellence for the commercial aviation market.