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Chinese firm seals deal with Bombardier at air show

(Xinhua)
Updated: 2008-07-17 07:21

FARNBOROUGH, BRITAIN -- The Canadian company Bombardier Aerospace has sealed a deal with China's Shenyang Aircraft Corporation (SAC) at the on-going Farnborough International Air Show.

Under the contract signed on Tuesday, China's SAC, a subsidiary of the state-owned aviation industrial entity China Aviation Industry Corporation (AVIC I), will supply the center fuselage on the newly launched Bombardier CSeries aircraft by taking part in the design, manufacture, assembly and relevant testing as well as after market support of four major work packages.

"AVIC signed a strategic cooperation agreement with Bombardier in April 2007. AVIC I attaches great importance to and supports the CSeries project and is willing to participate in this project as a risk-sharing supplier," said Wang Yawei, vice president of Commercial Airplane at AVIC I.

An Airbus A380 aircraft is displayed at the 2008 Farnborough International Air Show, Hampshire, southern England July 13, 2008. [Agencies]

"I am confident that the cooperation between AVIC I and Bombardier will further promote the development of the commercial aircraft business of our two companies and contribute to the development of the global aviation industry," Wang added.

Shenyang has a long and proud history as an industrial base in China, with aerospace being one of the major priorities.

According to Wang Ying, vice mayor of Shenyang city, the goal of the Shenyang National Aviation and High-Tech Industrial Base, the industrial hub dedicated to the high-tech aerospace sector, is to be China's largest single site for final assembly of regional jets, business jets, light aircraft and jet engines.

The news is seen as part of a long-standing relationship between AVIC I and Bombardier Aerospace. Back in June 2007, the two companies announced a Memorandum of Understanding (MOU) for a long-term strategic cooperation in the 90-seat to 149-seat commercial aircraft market. Both parties expect the outcome of this collaboration to result in mutually beneficial cost reductions and increased production efficiencies for their respective aircraft programs.

In July 2006, Bombardier entered an agreement that stipulated SAC would manufacture certain structural aircraft components for the Q400 aircraft that were previously sourced from Mitsubishi Heavy Industry (MHI) in Japan.

"Last year when we announced the MOU between AVIC I and Bombardier Aerospace we were confident of the long-term benefits to both companies. With the official announcement of the launch of the Bombardier CSeries aircraft program, the signing of this contract with SAC as a major structural supplier for our CSeries aircraft program is further evidence that this collaborative partnership was the right choice," said Pierre Beaudoin, president and CEO of Bombardier Inc.

The CSeries aircraft family which features the latest system technologies and aerodynamics is specifically designed to meet the growing needs of the 100-seat to 149-seat mainline commercial airliner market, which is estimated at 6,300 aircraft over the next 20 years. Bombardier expects to capture up to half of this market.

Currently, 25 employees from China are working at Bombardier's Montral facilities, whereas Bombardier employs some 3,000 employees in China. Seven commercial airlines in China now operate a total of 46 Bombardier regional aircraft, making Bombardier an important supplier of regional aircraft to China. Bombardier Business Aircraft is the market leader in China with 41 percent market share of the aircraft installed base.