Thursday, December 03, 2009

FACC acquired by Chinese aircraft company

The Chinese make no secret about their ambition as a major player in the large aviation transport sector and they are pulling out all the stops to make that a success by recruiting foreign execs and acquiring foreign companies.

Foreign acquisitions such as the FACC deal would provide them a boost as they still lack expertise in many areas. A successful merger between a Western style enterprise and a Chinese government owned entity will be a difficult challenge. It is unclear how well those foreign execs, if recruited, will perform under the Chinese management system.

Compete with other players like Boeing and Airbus is out of reach for the Chinese and it will remain so for the time being. They are counting on state-owned airlines buying local and the expected military orders to kick-off the initial production run of the ARJ21, the C919 and the new military transport project.

FACC acquired by Chinese aircraft company

VIENNA, Dec. 3 (Xinhua) -- The signing ceremony announcing the acquisition of Future Advanced Composite Components (FACC) by Xi'an Aircraft Industry Company Ltd of the Aviation Industry Corporation of China (ACIC) (Xi'an Aircraft-ACIC) was held in Austrian capital, Vienna on Thursday afternoon.

The vast majority of 91.25 percent stakes of FACC was acquired by Xi'an Aircraft-ACIC and Hong Kong ATL jointly, in which, Xi'an Aircraft-ACIC had absolute control.

It was the largest Acquisition implemented by Chinese enterprises in Central Europe, and it also was the first time that an aerospace manufacturing company of Europe was acquired by Asian aerospace manufacturing company.

The Xi'an Aircraft-ACIC CEO Meng XiangKai told the reporter that Xi'an Aircraft-ACIC was actively "joining into the global aviation industry chain."

The acquisition of FACC was therefore "the latest step of Xi'an Aircraft-ACIC joining into the global aviation industry chain. It also indicated a major change in patterns of international cooperation."

The chairman of Austrian FACC Hannes Androsch noted in the interview with Xinhua that, the acquisition of FACC stakes by Xi'an Aircraft-ACIC is in favor of FACC's development. He believed the future of FACC was full of hope: "It created a good opportunity for FACC."

FACC is large specialized companies founded in 1989, engaging in manufacturing composite material in parts and systems. The main products of the company include aerospace structural components and aviation interior products.

It is the supplier of Airbus 380 and sub-tier supplier of Boeing 787, but also the aviation composite material supplier of such internationally well-known aircraft manufacturers as Boeing, Airbus, Bombardier, Alenia Aeronautica and Eurocopter.

Aeronautical composite material is mainly used for producing the aircraft structural parts and interior parts, including wings, fuselage, dome, windows, seats, interior decoration, and so on.

Due to its characteristics of high strength, heat-resisting and anti-fatigue, it is increasingly widely used in the field of application. In A380, aeronautical composite materials accounts for 25 percent of total weight of the aircraft, while for the B787aircraft, it even reaches 50 percent.

Xi'an Aircraft-ACIC is one of the large-scale aviation manufacturer including research and production belonging to ACIC.

Xi'an Aircraft-ACIC also created a new brand "Shenzhou" for Chinese civil aircraft. According to introduction, aircraft "Shenzhou 60" has received more than 170 orders. "Shenzhou 600" would also put into the market next year.

For purpose with participating in the intensive market competition, "Shenzhou 700" is also in the development program, which would be put into market by 2015.

Chinese Ambassador to Austria Wu Ken, and Deputy General Manager of ACIC Geng Ruguang also attended the signing ceremony.

The chairman of Austrian Future Advanced Composite Components (FACC) Hannes Androsch (L) shakes hands with the Xi' an Aircraft Industry Company Ltd of the Aviation Industry Corporation of China (ACIC) (Xi'an Aircraft-ACIC) CEO Meng XiangKai during the signing ceremony in Vienna, capital of Austria, on Dec. 3, 2009.(Xinhua/Liu Gang)

China aviation giant to recruit foreign execs

BEIJING, Feb 26 (Reuters) - China's huge state aircraft maker, the Aviation Industry Corp of China (AVIC), said on Thursday it will reach beyond national borders to recruit foreign executives who can help it compete internationally.

The unusual global recruitment effort comes just months after AVIC was formed by the merger of two state aircraft makers, focusing on big projects such as a locally developed regional jet to reduce China's reliance on Boeing and Airbus .

The move by the AVIC group, which consists of more than 200 enterprises and 21 listed companies, was out of the norm for a secretive company that also builds the aviation hardware for China's military.

"Our goal is to become globally competitive," Gao Jianshe, the group's executive vice president, told reporters. "And to do that, we need executives with international experience."

The group, which notched up 2008 sales of 166 billion yuan ($24.3 billion), compared with $60.1 billion for Boeing, aims to recruit 13 vice presidents to assist in a broad range of activities including research, asset management, business development and marketing.

The recruitment move comes after Boeing posted an unexpected fourth-quarter loss and said it could cut 10,000 job this year, while expecting more plane order cancellations and uncertainty over the U.S. defense budget.

AVIC's move towards globalisation is not confined to staff only.

State media said last month that China welcomed investors to take a 30 percent stake in its newly incorporated jet engine company -- in which AVIC holds a 40 percent stake -- that supplies engines to the regional jet ARJ21.

China has signed up a total of 208 orders for the ARJ21, unveiled in late 2007, but the vast majority are from domestic carriers.

($=6.84 yuan) (Reporting by Kirby Chien; Editing by Ken Wills)


Anonymous said...

A major error in the Xinhua press release no doubt caused by language issues. FACC is not Future Advanced Composite Components but Fischer Advanced Composite Components. I can see how Future could be easily be mistaken for Fischer.

Coatepeque said...

Thanks, Google translator needs to be blamed.