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Aviation Industries Corporation of China II (AVIC  II)

中国航空工业第二集团公司

No. 67, Jiaonan St, Beijing, China  100712
P.O. Box 33 Beijing
Tel:  8610-64094319
Fax: 8610-64054556

In July 1999 AVIC was divided into two organizations: AVIC I and AVIC II.  Both of these organizations are under the administrative and regulatory control of the new COSTIND.

DIRECTOR GENERAL: Zhang Yanzhong

AVIC II was established in July 1999 after the original AVIC was split into two entities to foster competition in China's aviation industry.  AVIC II has more than 222,000 employees and took over 79 enterprises, including only 3 of the original 34 research centers.  It controls assets of 31.5 billion RMB.  AVIC II has assumed control of the Harbin and Changhe helicopter manufacturing sites as well as the production of the Hongdu Aviation Industry Group K-8 trainer and Q-5 Fantan strike aircraft. AVIC II exports are expected to reach 200 domestically built aircraft by the year 2005 and expected output will reach 36 billion RMB ($4.3 billion) compared to 15.7 billion RMB in 1999.  Output has risen 4.6% on an annual basis.   AVIC II will also produce the Shaanxi Aircraft Y-8 four engine turboprop transport as well as engine and airborne systems. AVIC II's civilian products include automobiles, motorcycles, motorcycle parts, textile machinery,  and pharmaceutical, medical and environmental equipment.  AVIC II is expected to reduce its workforce and merge some operations.

It was reported on 26 March 2000 that the Hongdu Aviation Industry Group sold 80 K-8 fighter trainers and a production line to Egypt for US $347 million.  The deal was reached on 23 December 1999 by the China National Aero-Technology Import and Export Corporation and Egypt. Aside from sales to Egypt, China has sold K-8 jet trainers and light ground attack aircraft to Myanmar. It also has been announced that the Hongdu Aviation Industry Group plans to issue A shares to raise about 500 million yuan (US $60.2 million) on either the Shanghai of Shenzhen stock exchanges.

Organizations under AVIC II include:

CHANGHE AIRCRAFT INDUSTRIES
Products:  Helicopters

CHENGDU ENGINE

CHINA NATIONAL SOUTH AEROENGINE

CHINESE HELICOPTER RESEARCH AND DEVELOPMENT INSTITUTE

HARBIN AIRCRAFT MANUFACTURING
Products: Helicopters

HARBIN DONGAN ENGINE

HONGDU AVIATION INDUSTRY GROUP
Products: K-8 fighter trainer

SHIJIAZHUANG AIRCRAFT MANUFACTURING
Products: General Aviation

[Source:  Andrzej Jeziorski, "AVIC Split: Time Will Be Judge," Flight International, 20-26 October 1999, p. 38; "Egypt buys fighters turned down by PLA," AFP, 27 March 2000; "Aviation Industry Corp. I & II, US Government International Market Insight, 30 November 1999; Xu Dashan. "K-8 aircraft export prospects soar," China Daily (internet edition) 28 April 2000.]


CNSThis material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2007 by MIIS.

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