3 AVIC subsidiaries to merge in aircraft engine consolidation move

Originlly known as the Aviation Industry Administration Commission and founded in 1956, AVIC has undergone 12 separate reforms up until now. By 1999 and known as the China Aviation Industry Corporation, it comprised a consortium of individual aircraft manufacturers which, in July that year, was split into two sections, China Aviation Industry Corporation I and China Aviation Industry Corporation II. By 2008 the downside of splitting resources saw the two sections merge once more to from AVIC, which was then presented to the public for the first time at the 2008 China International Aviation & Aerospace exhibition.
Having purchased American aircraft manufacturers Continental Motors, Inc. and Cirrus in 2010 and 2011 respectively, AVIC is now looking to become more competitive in the worldwide aircraft engine market, and as a consequence has begun a major restructuring of three of its affiliate companies, Sichuan Chengfa Aero-Science and Technology, AVIC Aero-Engine Controls and AVIC Aviation Engine which are all aircraft engine manufacturers. The intention is to merge all three to create economies of scale and pooled resources through the creation of one major company.
Trading was halted at Sichuan Chengfa Aero-Science and Technology, AVIC Aero-Engine Controls and AVIC Aviation Engine last week and an executive at Sichuan Chengfa revealed that the three companies were currently working on an “asset consolidation plan”, also indicating that and that trading might resume as early as this week if everything falls into place. China’s government is encouraging the merging of state-owned firms in an attempt to create innovative and globally competitive firms. As a consequence, AVIC is also looking at the possibility of mergers between three other of its subsidiaries: AVIC Aircraft, AVIC Capital and AVIC Electromechanical System.