China's growing pilot training and aircraft production markets received a fillip on 10 December when Liberty Aerospace, the US-based manufacturer, confirmed plans for an XL2 factory in the country.
Liberty will invest $150 million over 10 years into the Anyang city facility, which would be able to manufacture up to 100 of the two-seater light aircraft annually when fully operational.
Joint venture partner Anyang Angel Aero Science and Technology Development (3A), which is 50% owned by the Chinese government, will contribute $300 million to the operation.
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The company joins a growing number of western aircraft manufacturers, including Airbus, Cessna and Sikorsky, that have decided to set up final assembly facilities in China. "We are extremely excited to work with Anyang Angel Aero and to have a role in the fast-growing China aviation market," says Keith Markley, president and chief executive of Liberty Aerospace.
It is anticipated that the joint venture would manufacture and support at least 600 XL2s, all for the Chinese market and mainly for local flying schools. That could increase to 800 if China opens up its air space as expected in 2010.
"These aircraft will be manufactured using the competitive local labour rates and negate the need for expensive shipping costs from the USA to China," says Liberty chief operating officer Paul Bartlett.
His company has delivered around 90 of the $180,000 XL2s, mainly to US customers including flights schools, but Bartlett says the bulk of its orderbook is from overseas.
The Chinese contract would be phased, beginning with selling N-registered into China, followed by exporting aircraft to China for local registration, and eventually moving manufacture there. 3A would build the XL2's composite fuselage and buy in avionics and engines from the USA.
In addition to having US Part 23 certification, the XL-2 has also met Civil Aviation Authority of China (CAAC) requirements for light aircraft.
Liberty is the second major light aircraft manufacturer in as many weeks to announce plans to produce aircraft in China. Cessna and Shenyang Aircraft said a fortnight ago that the latter will manufacture the SkyCatcher light sport aircraft in China.
But while Cessna's sole production facility will be in Shenyang city, Liberty's Anyang factory is only for local demand while its facility at Melbourne, Florida will cater to the rest of the world.
"There are no plans to expand the manufacturing capacity beyond that which will be established in Anyang," says Bartlett. "Other Asian manufacturing facilities may be considered provided we can work with a strong local partner and local aircraft demand warrants the expansion."
Source: FlightGlobal.com
