Date: 04 Nov 2003
Time: 10:12
EADS has strengthened its presence in China with new strategic investments. It will subscribe for 5% of the issued shares of the Chinese aviation and automotive manufacturer AviChina Industry & Technology Company Limited in the current IPO on the Hong Kong Stock Exchange. The value of this investment is expected to be up to 30 million euros, depending upon final IPO pricing.
This is the first practical result following the Strategic Cooperation Agreement between EADS and AviChina in Hong Kong. EADS and AviChina will cooperate in the development, manufacturing and upgrade of aviation products, including helicopters, regional aircraft and trainers.
AviChina, with RMB 11.3 Billion (about € 1.2bn) of revenues generated in 2002 and a RMB 843 Million (about € 90 million operating profit) is a spin-off of the China Aviation Industry Corporation II (AVIC II). It is the leading Chinese company for helicopters, regional and general aviation aircraft, trainers and UAVs.
EADS and AviChina parent AVIC II have been cooperating for decades on different programmes. Eurocopter has established longlasting cooperative relationships in the civil helicopter field. This cooperation includes the EC120, a light single engine helicopter jointly developed and produced by Eurocopter, AviChina and Singapore Aerospace.
China is expected to become the world’s largest aviation market after the US. The Chinese economy is experiencing annual growth rates of 8% with, says EADS, 'outstanding growth potential for commercial aircraft, helicopters and other aerospace products and services'. In the helicopter sector alone, EADS envisages a market potential of € 500 million in the next ten years.