China to set up large aircraft company in Shanghai this month

China will set up its large aircraft joint venture in Shanghai this month and AVIC I will make a proposal at the ongoing National People's Congress to ensure the sustainable development of the large aircraft project, said Meng Xiangkai, the vice president of AVIC I Xi'an Aircraft Industry (Group) Co, Ltd yesterday.

The company will be jointly funded by several state-owned organizations, with the State-owned Assets Supervision and Administration Commission of the State Council as its biggest shareholder. AVIC I or the Shanghai Municipal Government is expected to be the second largest shareholder. AVIC II and some key state-owned enterprises like Baoshan Iron & Steel Group and China Aluminum Corp (Chinalco) will also own stake in it, according to sources.

Large aircrafts refer to those weigh more than 100 tons and owns over 150 seats, and the manufacturing requires complicated technologies and wide participations of various industries.