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Aviation Industries Corporation of China I (AVIC I)
中国航空工业第一集团公司
No. 67 Jiaodaolou NandaJie, Beijing China
100009
Tel: 8610-64032115
Fax: 8610-64013648
Website: http://www.avic1.com.cn/
In July 1999 AVIC was divided into two state owned organizations: AVIC I and AVIC II. Both of these organizations are under the administrative and regulatory control of the new COSTIND.
President: Liu Gaozhou
AVIC I was established in July 1999 after the original AVIC was split into two entities to foster competition in China's aviation industry. AVIC I has 281,000 employees and operates 104 enterprises, including 31 of the AVIC's original 34 research centers. Total assets are RMB 34.9 billion. AVIC I has taken over all military aircraft programs except the K-8 trainer and the Q-5 Fantan. Most notably, AVIC I manufactures the B-7 Flying Panther but also produces the Xian Aircraft Y-7, the H-5 and H-6 bombers and the FT-6, FT-7 and HJ-5 trainers as well as airborne systems. It also manufactures parts for Boeing jetliners. Non-aviation products include industrial gas turbines, automobiles, motorcycles, refrigerated machinery and environmental protection equipment. As a result of the reorganization, AVIC I will no longer have to go through China National Aerotechnology Import and Export Company (CATIC) to import and export it products
The success of this reorganization in fostering competition is uncertain because AVIC I and AVIC II produce different types of products and thus are not likely to compete for market share in certain categories, especially since relationships are still important in winning military contracts. AVIC I is expected to reorganize itself in the next two years by selling smaller factories or turning them into joint ventures. However, this may be hampered by the fact that all layoffs must be approved by the State Council.
In order to access new technology, on 7 January 2000, AVIC signed a five year agreement with Rolls-Royce to form a Joint Engineering Team (JET) to "co-ordinate research and technology projects, concentrating on high-pressure, core engine and system integration technology."
AVIC I's 20-year forecast of the Chinese civil aircraft market predicts 8% annual growth to 2008 and 9.2% growth between 2009 and 2018. AVIC I believes that China will need 1,474 new aircraft by 2018.
The Organizations under control of AVIC I include:
BEIJING AVIATION SIMULATOR
CHENGDU AIRCRAFT INDUSTRY
Products: Fighters
CHINA AIR-TO-AIR MISSILE RESEARCH INSTITUTE
GUIZHOU AVIATION INDUSTRY
Products: Trainers, turbojets, missiles and launchers
SHANGHAI AVIATION INDUSTRY
Products: Civil airframes
SHENYANG AIRCRAFT INDUSTRY
Products: Fighters and civil subcontracts
XIAN AERO-ENGINE
XIAN AIRCRAFT INDUSTRY
Products: Military and civil airframes
[Source: Andrzej Jeziorski, "AVIC Split: Time Will Be
Judge," Flight International, 20-26 October 1999, p. 38.; "Rolls-Royce
Signs New Agreement with China," Rolls-Royce press release, 7 January
2000; "Aviation Industry Corp. I and II," International Market Insight,
US government publication.]
Updated 7/8/2003
This
material is produced independently for NTI by the James Martin
Center for Nonproliferation Studies at the Monterey Institute of
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