Avio, the international Italian based aerospace group and a leader in aerospace propulsion, AVIC Dongan and AVICOPTER (controlled by the AVIC Group), signed an agreement to set up a joint venture for development and production of aeronautical power transmissions, destined for the Chinese civil market. Avio will have the 50% of the capital of the new company, AVIC Dongan the 42%, and AVICOPTER the remaining 8%. The expected investment for the constitution and the development of the joint venture in the coming years will be of over 150 million euros.
The joint venture will be responsible for development, production, sales and support of power transmission systems for commercial helicopters and turboprop aircraft. Moreover, the JV will concern accessory drive trains for commercial aeroengines, and mechanical transmission components such as gears and shafts for aeronautic, marine and industrial applications.
The joint venture will be established in a newly constructed industrial plant to be built in the industrial zone of Harbin, North East China, in an area of 97,300 square metres, of which construction work will begin in April 2011, and will be concluded by the end of November 2011. The joint venture will be fully operational at the beginning of 2012.
