Beijing plans to split Aviation Industries of China (AVIC) into two businesses by the end of April in a move aimed at breaking its manufacturing monopoly and encouraging competition, the company has confirmed.
The plan to divide AVIC into two - with each company involved in the production and sale of civil and military aerospace products - was submitted to China's State Council in February, and is part of a push to reform inefficient, state-run, monopolies.
The country's petrochemicals industry has already been divided into two vertically integrated enterprises.
Administrative functions for the new aerospace firms will be provided by the State Commission of Science, Technology and Industry for National Defence.
The official China Daily newspaper quotes Yang Jimin, deputy director of AVIC's aero-engine bureau, as saying: "The restructuring move will not have any impact on our operation with foreign partners, which will be strengthened and developed further."
Source: Flight International