AVIC bags big deal in Venezuela

09:12, July 13, 2010      

Email | Print | Subscribe | Comments | Forum 


The Aviation Industry of China (AVIC) booth at the 13th Aviation Expo China held in Beijing last September. Bao Fan / for China Daily

AVIC (Aviation Industry of China) International Holding Corp has bagged a big overseas contract in Venezuela, sources familiar with the matter said on Monday.

The import and export subsidiary of aerospace conglomerate Aviation Industry Corporation of China signed a contract last Friday with two Venezuelan partners to deliver 25 multi-purpose Y-12 light aircraft and two helicopters, said the sources.

No financial details or a time frame for the deliveries were immediately available.

The contract is part of a framework agreement between the two countries signed in April this year. AVIC had entered into an agreement with Venezuelan fund Fundagrial, and a local company Sireca for aircraft exports.

According to the agreement, the Chinese company will export 33 civil airplanes to Venezuela over the next five years and also provide after-sales and equipment services.

Though the first contract covers only 27 aircraft, the remaining six will be included in a subsequent contract, said AVIC sources.

AVIC was constituted in 2008 by merging China Aviation Industry Corporation I and China Aviation Industry Corporation II.

The airplanes will be produced at AVIC Helicopter Co, a joint venture between Aviation Industry Corporation of China and Tianjin municipal government.

AVIC Helicopter has several units under its umbrella. Prominent among them are Hafei Aviation Industry Co and Changhe Aircraft Industries Group.

Hafei will make the Y-12 aircraft and Changhe the helicopters. AVIC has exported over 100 Y-12 aircraft to 20 nations from 1986 onwards, said the sources.

Venezuelan Fundagrial, also known as the Fund for Agricultural Development, is an organization that promotes agricultural and regional economic development in central and northern Venezuela.

The organization has teamed with Sireca for an airline venture. The aircraft imported from China will be used by the venture for the transportation of passengers and agricultural goods.

AVIC International was expected to invest $300 million in the Venezuelan venture, according to recent media reports. The company, however, has denied the reports.

"We are selling airplanes to the company and have no relations with its operations," said Liu Yue, a company spokeswoman.

Sources said the Venezuelan deal is the biggest contract for civilian aircraft in recent times.

The framework agreement is expected to bolster aviation ties between the two countries and help boost air services in the South American nation, according to Zhang Guangjian, deputy general manager of AVIC International.

China has in recent years been stepping up exports of civil and defense aircraft. Last year it exported 42 fighter aircraft to Pakistan. Aircraft companies are also exploring new markets like Pakistan, Cuba and Egypt, said analysts.

China is Venezuela's second-largest trading partner, while Venezuela is China's fifth-largest trading partner in South America. According to official statistics, trade between the two countries in 2009 was $7.15 billion.

Source: China Daily

(Editor:石希)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion