China has established a state-owned aircraft engine maker called China Aero-Engine Group, in order to help develop native aerospace technologies and compete in the global aviation sector.
Launched with a CNY50bn ($7.50bn) investment, the new company employs 96,000 people.
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The new company will mainly focus on designing, producing and testing aircraft engines, reported the state television.
Apart from improving state-owned enterprises and the restructuring of the aviation industry, the new company intends to boost the capacity of the armed forces.
Under its initiative to overhaul the state-owned sector, the Chinese Government has prioritised its involvement in aircraft engines, high-speed rail and nuclear power, reported Xinhua.
On the eve of the establishment of China Aero-Engine Group, president Xi Jinping has urged the employees of the new company to drive the country’s aviation goal in an innovative way forward.
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By GlobalDataChina’s state council, Beijing municipal government, Aviation Industry Corporation of China (AVIC) and Commercial Aircraft Corporation of China have invested in China Aero-Engine Group.
The country is planning to launch around 100 major projects over the next 15 years to augment its technological capability and make the people’s lives better.
In March, state-owned AVIC said it was settling a CNY129bn ($19.32bn) merger of its aircraft engine businesses to create a giant to compete other global aerospace giants such as Pratt & Whitney.
