China Establishes Aero-Engine Conglomerate


China is setting up a conglomerate that will merge three aircraft engine manufacturers. The three companies joining the conglomerate are Sichuan Chengfa Aero Science & Technology Co., Avic Aviation Engine Corp. and Avic Aero-Engine Controls Co. The merger of the three companies, each already strong in its area of expertise, is expected to strengthen position of China in the sphere of aircraft development and production. The move will improve China’s standing in plane design and manufacturing. Though one of the biggest aviation markets, the country is still heavily reliant on imported engines for military and commercial aviation. The move is also expected to improve the variety and reliability of aero-engines for unmanned aerial systems.