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Aerospace Industry in Sichuan Takes off

  Zeng Li, Board of Director of China Electronics Technology Avionics Company (CETCA), has been occupied over the recent half month. After the successful debut of Comac C919, CETCA, as one of the avionics suppliers of C919, has welcomed a large number of domestic and international visitors and its business in negotiation has stepped over C919.

  The fact indicates the booming aviation industry in Sichuan Province, which is one the four biggest research base for military-civil aircrafts and one the three largest research base for aero-engines. The aviation and combustion engine industry is one of the five hugest high-end developing industries recognized by the Sichuan Provincial Party Committee and People’s Government of Sichuan Province. Last year, the total output value of the aviation and combustion engine industry has exceeded 40 billion yuan. The total output volume is expected to reach 150 billion yuan by 2020 according to the plan, among which, the support from the aviation industry is of great importance.

  Competitiveness in International Cooperation

  Going globally Plus Bringing in

  “We are sending groups for international aviation exhibition every year such as Paris International Air Show and Farnborough International Air Show.” said Li Jiangshi, Chairman of Haite Group. According to him, it’s a good chance for being close contact with first-class international technologies and products.

  Likewise, CETCA has grasped the same opportunity by going out through the air show. In Zeng Li’s eyes, as a latecomer in the market, it is a right choice for CETCA to be actively engaged in the international aviation industry. In order to be better involved in the industry, they have conducted cooperation with famous foreign enterprises in research and development, manufacturing, and sale, including some TOP 500 enterprises such as Rockwell Collins in the US and Thales in France. Mature technologies are shared and emerging technologies are possessed by all by conducting cooperation with and granting authorization to foreign enterprises. In this way, competitiveness has been created for the products to go out.

  Sichuan has made layout for the independent research and development of avionics and aero-engines. Last year, only half month after the founding of the Aero Engine Corporation of China, Sichuan has signed cooperation agreement with the company. At present, it has established the research and development center, enterprise, and laboratory base in Sichuan.

  With a strong impact on other industries, the aviation industry will bring opportunities for related supporting industries to transform. Take the C919 nose as an example: the machinery processing field has stimulated the development of over 20 neighboring enterprises.

  An All-Chain Layout

  Manufacturing Plus Renting Plus Maintenance and Repairing

  Besides research and development and manufacturing, the market for renting and maintenance and repairing is enormous.

  “The lifetime of an airplane is usually 25 years. C919 is expected to be sold by 2000, and there is a huge market for maintenance and repairing and spare parts.” said Zeng Li. A base for the maintenance and repairing of avionics is under construction by cooperating with Rockwell Collins. The revenues generated in the base at the peak period are estimated at approximately 100 million US dollars.

  Not long ago, Sichuan International Aero Engine Maintenance and Repairing Group has been approved by the Ministry of Commerce to cultivate outbound projects in Chengdu Shuangliu Bonded Area. After the project is completed, the company is able to maintain and repair 600 engines, becoming the largest base for maintenance and repairing of the aero-engines in Asia with international competitiveness.

  Airplane renters often purchase the planes by large numbers and rent these planes to aviation companies for years at one time. Compared with traditional investment channels such as stock and bond markets, plane renting is able to generate predictable cash flows and stable returns.

  In order to catch the market, Sichuan Development Holding Co., Ltd. has cooperated with Standard Chartered Bank in establishing an international aviation renting company in Bulin of Ireland, the global aviation renting hub. Sichuan has also taken the lead in China where the industry has just taken off.


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