A bit of diversion from unending debate between Mig29 and the rest of forummer Here is the latest news on Chinese Engine development.Time to take stock
Steady as she go China will eventually master the reliable Turbo fan engine production therefore the need for further investment
Domestically made J-10 jet fighters put on a performance at the Zhuhai Air Show on November 17, 2010 in Zhuhai, Guangdong Province. Photo: CFP
China's aviation industry will sign a series of cooperation agreements and exhibit its latest products at the 2011 Paris Air Show, which will be held from June 20 to 26, to promote the theme "Integration into the World Aviation Industry Chain."
The aviation industry is a symbol of globalization, as no player can grow by working alone, Lin Zuoming, president of the Aviation Industry Corporation of China (AVIC), said to the Global Times Thursday.
AVIC produces components and parts for Boeing and Airbus, and the corporation's own aircraft also needs sub-systems and equipment from foreign providers.
But that's not the whole story, as AVIC pushes global cooperation to a new level.
Many enterprises under AVIC have signed cooperation agreements and established joint ventures to co-develop advanced sub-systems for the Chinese C919 passenger aircraft, just one example of the corporation's ambition.
"The joint ventures will not only supply parts for the C919, but foreign aircraft as well," Lin said, adding that General Electric and AVIC have established a 50-50 joint venture in Shanghai to develop advanced avionics and sell the products worldwide.
"This kind of cooperation, which integrates both sides' capital and technology, is totally different from being a subcontractor," he said.
In addition to establishing joint ventures, the corporation will also purchase more valuable foreign assets.
AVIC recently signed an agreement with the US aviation firm Cirrus Design Corporation in the form of a company merger, buying a 100 percent stake.
"It's a win-win relationship. The purchase will help to develop China's general aviation and can promote economic growth in the US as well," Lin said.
Overcoming obstacles
During celebrations for the Chinese Aviation Industry's 60th anniversary held on April 17, the corporation vowed to reach the same level as major world players by 2021.
China has seen great improvements in the fields of aircraft design, avionics and materials, but weaknesses remain in power plants, Lin said.
AVIC's engine development team has also made remarkable achievements. After 20 years of development, the Taihang engine is progressing very well.
However, Lin added that developing aerial engines is one of the most sophisticated of industrial fields and needs more investment, time and testing to catch up with world leaders.
In order to reach its target of being a top defense and civil aviation system provider, the corporation will invest 10 billion yuan ($1.54 billion), equivalent to AVIC's net profit in 2010, in improving domestic jet engines over the next five years.
A total of 10 billion yuan will not be enough to solve all the problems, but as the backbone of China's aviation industry, the corporation is obliged to work industriously to tackle the difficulties, according to Lin.
"We also hope to power Chinese civil aircraft and even foreign civil aircraft with our own engines."
A domestic engine is scheduled to be delivered to power the Chinese C919 passenger aircraft in around 2020, Wang Zhilin, president of the Commercial Aircraft Corporation of China, told media in April.
The engine is not based on the core engine of the Taihang turbofan engine, Lin told the Global Times Thursday.
"It is a completely new engine and can compete with the foreign engine (CFM LEAP-X) that was chosen by the C919," Lin said, adding that users of the C919 can choose between foreign and Chinese engines.
Corporate strategy
By restructuring its companies into modern enterprises, AVIC has gone from losing 132 million yuan in 1999 to making a net profit of 10.5 billion yuan ($1.62 billion) in 2010, and has been a world top 500 enterprise since 2009. AVIC will continue to build up a modern enterprise system, train staff and continue to optimize the corporation's industrial layout.
"The industrial layout of the corporation was set in the Cold War era when China was preparing for war. Many enterprises are located in third-tier cities or remote areas," Lin said, adding that the layout is neither market-oriented nor resource-oriented.
In response to this potential challenge, the corporation optimized its layout by establishing its general aviation headquarters in Zhuhai, its civil engine headquarters in Shanghai and helicopter headquarters in Tianjin, Lin said.
The corporation's long-term goal is to become a State-owned public company and turn aviation into a pillar industry of China.
To meet the revenue target of 1 trillion yuan ($154.5 billion) by the end of 2020, the corporation will also widen its industrial chain and operate in more fields by taking measures such as purchasing more non-aviation assets.
Non-aviation sectors now contribute over 50 percent to the corporation's total revenue, Lin said.
One dollar of output in the aviation industry should in return promote development that is worth 15 dollars in non-aviation sectors, Lin added, citing a RAND report. E-mail Print