Manufacturing News

Guiyang to build aero-engine outsourcing base

A newly-approved bonded area in Southwest China's Guizhou province aims to build the country's largest outsourcing base for aero-engine, sources said Monday.

Construction of 40,000-square-meter workshops has started for a joint venture of AVIC International Holding Corporation and AVIC Liyang Aero-Engine Co, Ltd, said the headquarters for the comprehensive bonded zone in Guiyang, the provincial capital.

With an investment of $100 million, the project will provide aero parts for Boeing and Airbus and realize imports and exports of $200 million in 2015, said the headquarters.

Some production lines of AVIC Liyang Aero-Engine Co, Ltd's aviation engine industry base in a high-tech zone in Guiyang have started operation. Liyang Aero-Engine will invest 4 billion yuan in the base.

The State Council, or China's cabinet, approved last month the establishment of the comprehensive bonded zone in Guiyang with an area of over three square km.

The zone will be put into operation in September next year. It will enjoy the same tax and foreign exchange polices as the Yangshan Free Trade Port Area, the country's first bonded port established in Shanghai in 2005.

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