Airbus Industrie and United Technologies have signed agreements awarding new work packages to China Aviation Industry I (AVIC I).

The Airbus agreement allocates $15 million of Airbus A320 wing work from Airbus partner British Aerospace to AVIC I subsidiary Xian Aircraft Industry Group. The work will comprise four packages: machining, fabrication, assembly and titanium forming work on leading and trailing edge sections.

Ian Dowler, BAe Airbus head of China co-operation, says the contract covers 500 shipsets, with first deliveries to BAe towards the end of next year. "The potential is significant in that the programme for A320 parts manufacture allows us to evaluate further packages of work for Xian, some of which may be attractive, depending on the investment needed," says Dowler.

The UTC agreement covers further co-operation in research and development with AVIC I, which has worked on 23 such projects with UTC over the past six years, bringing in $839,000 in funding. The six new contracts, two with the Beijing Institute of Aeronautical Materials and four with the Beijing Aeronautical Manufacturing Technology Research Institute, are to be funded at $279,000. The programmes are a mix of Pratt & Whitney and Sikorsky related work. AVIC I has absorbed 31 of China's 34 aeronautical research institutes.

Source: Flight International