BAIC to start NZ cooperation

Beijing General Aviation Co Ltd's booth at an aviation exhibition in Beijing in September. Provided to China Daily

Automaker's aviation unit to help build Pacific Aerospace aircraft

Beijing General Aviation Co Ltd, a subsidiary of BAIC Group, signed on Tuesday cooperation agreements with New Zealand's Pacific Aerospace Ltd, an airplane builder. That country's Premier John Key attended the ceremony as his first stop on a visit to China.

It's a significant step for the two countries, Key said, since New Zealand does not export just dairy and lamb to China but also technology.

The China-New Zealand Aviation Industrial Park will be established in the Pinggu District of Beijing.

"The industrial park will cover the whole industry chain, from manufacture to training," Key said.

The two companies will jointly build the P-750 airplane, one of Pacific Aerospace's main models, in Beijing.

"BAIC Group will provide full solutions for residents' transportation," said Xu Heyi, chairman of the Beijing General Aviation and the group.

BAIC Group can be more competitive by entering the general aviation industry, he said. It chose a New Zealand partner because of that country's general aviation industry's long history and advanced technology.

The single-engine, propeller-driven P-750 received type certification from China in 2012.

The joint venture's first aircraft will be built this year from parts imported from New Zealand. Capacity to produce components and a complete plane will follow by March 2017, Beijing General Aviation said.

"The P-750 is a multipurpose aircraft and our sales target is 20 confirmed orders in 2014," said Mao Hai, vice-president of Beijing General Aviation.

The manufacturer also expects 200 optional orders by the third quarter of 2014, Mao said, and forecast domestic demand of about 400 such airplanes by 2015.

Beijing General Aviation also will develop in other general related sectors, such as operation, training and maintenance.

Other Chinese companies may enter the aviation industry as a ban on general use of low-altitude airspace is to be further lifted this year.

"We will see more Chinese enterprises look for partnerships worldwide and explore the Chinese market together," said Gao Yuanyang, director of the General Aviation Industry Research Center at Beihang University in Beijing.

Gao said China won't only be a leading general aviation market globally but an important part of the airplane manufacturing chain.

China's general aviation market will grow an annual 22 percent after 2015, data show from IFC International Inc, a US technology, management and policy-consulting firm.