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- Shanghai Daily, April 22, 2011
A subsidiary of China's biggest plane maker has
sealed the purchase of Teledyne Technologies' piston engine business in a US$186
million transaction, which marks a key step for the Chinese firm to tap the
global aviation industry.
AVIC International Holding Corp, a subsidiary of
Aviation Industry Corp of China, bought the entire stake in Continental Motors
Inc and Mattituck Services Inc through its subsidiary Technify Motor (USA) Inc
from United States-based Teledyne.
AVIC International said the acquisition is vital
in its strategy.
"China is gradually opening its low-altitude
airspace and the deal will pave the way for the development of the domestic
general aircraft market," said Wu Guangquan, president of AVIC
International.
The Chinese civil aviation regulator has said
previously that it would fully open the country's low-altitude airspace to
support the general aviation industry by 2015.
The Civil Aviation Administration of China has
already opened the low-altitude airspace in Jilin, Guangdong and Heilongjiang
provinces on a trial basis. It will add the provinces of Hunan and Hubei as well
as the autonomous regions of Guangxi and Inner Mongolia to the pilot project
soon.
As part of its overseas expansion AVIC's
subsidiary China Aviation Industry General Aircraft Co Ltd had previously said
it would buy a 100-percent stake in US Cirrus Industries Inc, while another
subsidiary CATIC Beijing Co Ltd acquired 20 percent in Germany's KHD Humboldt
Wedag International AG for 45 million euros (US$66 million) to become its
biggest shareholder.
The sale of Teledyne's business allows the firm
to focus on its core commercial electronics and instrumentation business, said
Robert Mehrabian, its chairman.
Continental Motors is a leading manufacturer of
piston engines, spare parts and components that are used in small
propeller-driven general aviation aircraft.
