Hamilton Sundstrand, AVIC EM finalize JV agreement

Hamilton Sundstrand Corporation and AVIC Electromechanical Systems Company Limited (AVIC EM) have finalized plans to co-develop and manufacture the electric power system for the new Commercial Aviation Corporation of China (COMAC) C919 jetliner. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX), and AVIC EM is a subsidiary of Aviation Industry Corporation of China (AVIC). The two companies announced a framework agreement for the joint venture at the Zhuhai Air Show in November, 2010. This agreement finalizes the commitment to form a new company that will develop and manufacture the C919's electrical power system, including generation and distribution, and will serve as a tier one supplier to COMAC on that program. This joint venture will be located in Xi'an and plans are in place to begin facility development in June, 2011. "We are very confident this joint venture will be a great success and provide world-class electric system products for China's C919 airliner and other future programs," said Andreas Schell, president, Hamilton Sundstrand Electric Systems." AVIC EM designs and produces a wide range of aerospace airborne systems and products for both the Chinese and international markets. "AVIC Electromechanical Systems Company Limited and Hamilton Sundstrand Corporation have signed the joint venture contract for the electric power system of C919 large passenger aircraft program, marking substantial progress for both parties in their cooperation," said AVIC EM President Mr. Wang Jian. "It is highly hoped that the two parties will work hard and move forward together to complete the formation of the JV and put it into operation as soon as possible, and contribute to the flight of C919 into the blue sky at the earliest possible date."

Source: Hamilton Sundstrand, A United Technologies Company (NYSE:UTX)
Date: Mar 16, 2011