AVIC invested 3 billion yuan to integrate engine casting business

On April 14, 2015, Aviation Industry Corporation of China (abbr. AVIC) announced that it plans to integrate the casting business of its four subsidiary engine manufacturers, including AVIC Aero-Engine Controls Co., Ltd., Shenyang Liming Aero-Engine (Group) Corporation Ltd., Guizhou Liyang Aero-Power Co., Ltd., China National South Aviation Industry Co., Ltd. The casting business to be integrated covers the development, production, sales and service of aero-engine parts such as investment casting blades, integral investment castings, thin-wall structural components, etc., as well as the optimized design of ceramic cores and casting processes, and the engineering application of new techniques and new materials. With a total investment of approx. 3 billion yuan, a new company named AVIC Precision Casting Technology Co., Ltd. has been established.

According to the announcement, the total amount of investment for AVIC Precision Casting Technology Co., Ltd. is CNY 2.947 billion, the four subsidiary engine manufacturers invest in assets CNY 1.413 billion, AVIC Engine Co., Ltd. (also a subsidiary enterprise of AVIC) invest in land CNY 0.124 billion, and the rest investors invest in cash CNY 1.41 billion.