Chinese manufacturer wants more commercial work and less reliance on defence work
China's Shenyang Aircraft (SAC) is seeking to expand its commercial business through new supplier contracts for large aircraft components and tie-ups with general aviation manufacturers to offset falling military sales.
SAC expanded into manufacturing commercial aircraft components in 1985, but military sales still account for over 70% of revenue. "We have to develop civil products to keep our company stable," says assistant director general for commercial aircraft management, Lin Guoxian.
Production of SAC's main product, the J-8/F-8 fighter, has slowed as China has cut its military requirements. Several factories under the China Aviation Industries I (AVIC I) umbrella - including Chengdu, Shenyang and Xian - are to receive work on the Boeing 7E7 under contracts being negotiated with Boeing. Lin says SAC is unsure which parts it will build because it is waiting for AVIC I to distribute workshare.
SAC supplies Airbus with emergency doors and wing subassemblies for A320 family aircraft and is negotiating to supply additional A320 components. SAC also supplies tail sections for the Boeing 737 and until recently built cargo doors for the 757, as well as the tail, vertical stabiliser, engine pylon and electrical subassembly for the new AVIC I ARJ21 regional jet.
The company wants to enter the general aviation market with aircraft in the two- to 10-seat category. "General aviation in China has a big potential," Lin says. The aircraft "are easier to manufacture than fighters, but we will need a civil certificate and for a certificate we need a lot of money".
SAC has begun talks on partnerships with several foreign general aviation manufacturers, some of which are interested in setting up second assembly lines in China for existing products, while others are keen to team up and develop an indigenous aircraft.
BRENDAN SOBIE / BEIJING
Source: Flight International
